Mr. Koort's price target on Potash Corp. is US$123.69 a share, and his target on Mosaic is US$64.00 a share. He cut each of them 6% from their prior levels.<\/p>\n
Early this year, the fertilizer sector underwent a dramatic recovery as farmers finally brought their applications back to normal levels. But now that pricing momentum has stalled, according to Goldman Sachs analyst Robert Koort.<\/p>\n
"Despite expectations for robust spring demand, our channel checks suggest the planned domestic potash price hike is not going through and recent nitrogen and phosphate prices have weakened," he wrote in a note to clients.<\/p>\n
"We also see increased risk from poor weather delaying field work and moderating [agriculture] commodity prices."<\/p>\n
Mr. Koort downgraded both Potash Corp. of Saskatchewan Inc<\/a>. and Mosaic Co<\/a>. to "neutral" from "buy", noting that he sees "limited near-term momentum" for the fertilizer sector. He said that the next opportunity to re-establish higher pricing may come this summer, when new export orders are expected from South America. "Until then, we believe the stocks will be range bound as investors await confirmation that positive trends will return," he wrote.<\/p>\n Mr. Koort's price target on Potash Corp. is US$123.69 a share, and his target on Mosaic is US$64.00 a share. He cut each of them 6% from their prior levels.<\/p>\n