Potash Corp. Shares Fly (POT)

Potash Corp. (NYSE:POT) shares could rally another 14% on top of today's 4.8% rally.  Goldman Sachs (NYSE:GS) believes Potash Corp. could hit $140 in the next 12 months.

GOLDMAN SAYS BUY POTASH
Goldman Sachs (GS) is upgraded Potash (NYSE:POT) today to Buy from Neutral with a $140 price target.

According to the firm the upgrade is based on an improved demand outlook for potash in 2010 both in the US and globally. Over the past few weeks, datapoints have confirmed returning demand and they believe POT offers the most attractive way to play a potash recovery.

Goldman believes US farmers will significantly increase applications vs. significantly weak 2009 rates, and worldwide demand should pick up following the long-awaited China contract settlement. Finally, investor sentiment on fertilizers has improved meaningfully, yet they believe we are still in the early phase of this upcycle. Firm sees 20% potential upside to their $140 price target.

The Nation has been bullish on Potash Corp. for some time, re-read Speculating the Return of Potash (POT, MOS, DBA) we put on on Nov 18th, since that time POT shares have moved up 18%.

Disclaimer: No positions in any of the securities mentioned in this publication.