Deutsche Bank Raising Price Target On Potash Corp. (POT)

Deutsche Bank is raising its price target on shares of Potash Corp. POT to $150 and has a Hold rating after the potash producer received a bid from BHP Billiton BHP yesterday. In a note to clients Deutsche Bank writes, "We are raising our price target on PotashCorp to $150 to reflect a minimum acquisition price following BHP's $130 takeover proposal for the company. With BHP's bid following last week's news of the likely merger of the two largest Russian potash producers, the consolidation of the global potash industry is underway. While we would not rule out a purchase price for PotashCorp as high as $175 owing to the uniqueness of the asset (world's largest, lowest cost producer), we believe the intrinsic (DCF)) value of PotashCrop, is ~$150. Hold." Shares of Potash Corp. closed at $143.17 yesterday.