Potash Corporation of Saskatchewan Inc. (Potash Corp.) has reported a sobering set of results for 2Q 09. Revenues and earnings were both well below our forecasts as Management's efforts to support prices by limiting supply only led to a collapse in sales. Accordingly, the company has slashed its FY 2009 EPS guidance. However, although we expect to lower our estimates and target price in our next update report, we feel that the current market valuation is about right....

The Potash Corporation of Saskatchewan Inc. (Potash Corp.) NYSE common stock hit our target price on 04 May 2009, driven by positive company fundamentals (as discussed in our last update report) as well as a broad-based rise in Canadian equities on the back of encouraging US and Chinese manufacturing data. However, we believe the stock’s near-to-medium term upside potential may have been exhausted, and therefore moderate the stock to a HOLD until the company reports its…

Potash Corporation of Saskatchewan Inc. (Potash Corp.) announced its plan to further reduce potash production to avoid accumulation of inventory and adjust supply, in line with declining demand. Steep decline in the price of agricultural commodities are forcing crop producers to reduce the use of high cost fertilizers, particularly potash, resulting in a significant decline in fertilizer prices. Although we are likely to lower our estimates to factor for the…