Dahlman Rose Reiterates Hold Rating on Potash Corp. (POT)

Dahlman Rose & Company is out with a research report this morning, where it reiterates its Hold rating on Potash Corp. POT; it did not provide a price target for the stock. The DR analysts noted that last night the Canadian federal authorities rejected the takeover of Potash Corp citing that the transaction is not a net benefit to Canada under its Investment Canada Act. However, a 30-day appeal process appears to indicate that the story is not yet over. POT shares traded below $140 per share in after-hours trading subsequent to this announcement. Based on our analysis, the analysts believe that this is a near-term buying opportunity as they expect positive discussions during the upcoming 30-day appeal process. The analysts added, “The market for agricultural nutrients have improved over the past several months due to weaker crop yields, a longer Fall application season, and under application of fertilizers over the past several years. We believe that the near-term floor on POT shares is in the mid-$140s range based on Potash Corp.'s improved earnings profile.”