Port Of Tauranga Ord Shs T.POT

RE: Potash expected to climb to $195

[JohnDD]

Here's the article. Potash Corp. shares expected to climb to US$195 Posted: January 15, 2008, 1:18 PM by Jonathan Ratner Market Call, Industry With expectations for fertilizer prices to climb even higher, RBC Capital Markets analyst Fai Lee has hiked his price target on Potash Corp. to US$195 from US$155. He has an “outperform” rating on the stock, which climbed nearly 8% on Monday and is up roughly 20% in just the past month. “We continue to view PotashCorp as attractively valued given our view that there is potential for potash prices to move significantly higher,” Mr. Lee told clients in a note, adding that the company’s potash expansion projects also present substantial value. RBC’s potash price assumptions for 2008 were raised to US$300 from US$275 per tonne, and to US$350 from US$300 for 2009. However, Mr. Lee said these estimates could be on the conservative side and realized prices could climb as high as US$495 by 2009. If prices reach this level and long-term prices climb at a rate of 4%, this would produce US$60 to US$80 per share in additional upside above the new target, he said. As a result of higher potash, phosphate and nitrogen fertilizer price assumptions, which were partially offset by higher production costs, RBC’s earnings per share estimates for 2008 and 2009 also rises to US$6.50 and US$8.24, respectively. Jonathan Ratner