UPDATE: Bank of America Raises PT on Potash Corp from $70 to $74

Bank of America has published a report on Potash Corp of Saskatchewan POT raising the price target from $70 to $74. In the report, Bank of America wrote, "Chinese buyers agreed to pay $470/mt for 2H:11 potash deliveries, a rise of $70/mt over the 1H:11 contract price. India may buy at least 4 mn mt through March 2012, which would support global pricing. The recent merger of Russian producers Silvinit and Uralkali furthers industry consolidation and concentrates marketing of 60%-65% of global supply in just two marketing organizations. A key strategic step for POT is to complete its $7 bn potash expansion program through 2013, raising its effective capacity to 17 mn mt (vs 2011E shipments of 9.8 mn mt) and strengthening its role as global swing producer, one poised to benefit disproportionately from rapid demand growth forecast during 2011-13." Bank of America rated Potash Corp a BUY with a price target raised from $70.00 to $74.00. Potash Corp closed Thursday at $59.10.