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

Dahlman Rose & Co. 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 on the stock. The Dahlman analysts cited the company’s most recent earnings report, which beat estimates, the outperformance coming from better nitrogen margins and a special dividend from Israel Chemicals. Interesting to note is that nitrogen volumes were lighter than the analysts’ expectations even with an average price of $287 per metric ton; that is a 20% improvement year over year, which drove margins toward 30%. The Dahlman analysts expect seasonal potash volume declines to be magnified by lower international volumes to India and China in the third quarter. However, they do anticipate a “better North American Fall fertilizer application season which we expect would largely be a 4Q10 event.”