Morgan Stanley Raises Price Target On Potash (POT)

Morgan Stanley is raising its price target on shares of Potash Corp./Saskatchewan POT to $195 from $180 and is keeping its Overweight rating on shares. In a note to clients, Morgan Stanley writes, "We are increasing both our 2011 EPS expectations from $9.50 to $10 and our price target from $180 to $195, both incrementally closer to the $12 EPS and $245 PT Bull Case that we laid out in our January 6 note. Separately, we are also raising our Mosaic ($78.67) price target from $84 to $90. With Potash Corp. and Canpotex already sold out of potash for 1Q11 – likely another record 1Q - we have incremental conviction that 2011 potash demand is likely to surprise to the upside while 2011+ potash supply is likely to surprise to the downside creating substantial earnings leverage for swing producer Potash Corp." Shares of POT gained $5.52 yesterday to close at $174.14, a gain of 3.3%.