Potash Corporation of Saskatchewan (POT) Shares Plunge on JPMorgan Downgrade

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Nothing seems to be going right if you are a shareholder of Potash Corporation of Saskatchewan (NYSE:POT) stock, as shares have continued to plunge today following a downgrade by the investment firm, JPMorgan. JPMorgan analyst Jeffrey Zekauskas decided to change the firm’s ‘buy’ rating to ‘neutral’ and he believes that the company will be reducing their dividend from $1.52 per share to as little as $1 per share later this year. Additionally, JPMorgan has lowered their price target from $23 per share to just $16.

Sparked by the downgrade, shares of Potash Corporation of Saskatchewan (USA) (NYSE:POT) have hit new multi-year lows of $14.64 before bouncing back slightly. At the current $1.52 dividend, the stock pays a yield in excess of 10.2%. While the company’s earnings are strong, 2016 is expected to be a weaker year for the company before earnings are propped back up in 2017 and 2018, according to consensus estimates.

The stock is down 7.71% or $1.24 following the news, hitting $14.85 per share. About 14.29 million shares traded hands or 58.60% up from the average. POT has declined 47.96% since June 18, 2015 and is downtrending. It has underperformed the S&P500 by 39.09%.

From a total of 13 analysts covering Potash Corp (NYSE:POT) stock, 4 rate it a “Buy”, 3 a “Sell”, and 6 a “Hold”. This means that 31% of the ratings are positive. The highest target price is $29 while the lowest target price is $13. The mean of all analyst targets is $23.05 which is 55.22% above today’s ($14.85) stock price. Potash Corp was the topic of 23 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Barclays Capital maintained shares on January 12 with a “Equal Weight” rating. HSBC downgraded shares to a”Hold” rating and a $24.50 target share price in their report from an October 7. HSBC upgraded POT stock in a recent report from December 15 to a “Buy” rating. Finally, JP Morgan maintained the stock with a “Overweight” rating in a report they issued on a November 2.

Potash Corporation of Saskatchewan Inc is a fertilizer company. The company has a market cap of $13.62 billion. The Firm operates in three business divisions: potash, nitrogen and phosphate. It has 8.42 P/E ratio. The Firm owns and operates five potash activities in Saskatchewan and one in New Brunswick.

#focuskw=’Potash Corporation of Saskatchewan (USA) (NYSE:POT)’##metadesc=’Nothing seems to be going right if you are a shareholder of Potash Corporation of Saskatchewan (NYSE:POT) stock, as shares have continued to plunge today following a downgrade by the investment firm, JPMorgan. JPMorgan analyst Jeffrey Zekauskas decided to change the firm’s ‘buy’ rating to ‘neutral’ and he believes that the company will be reducing their dividend from $1.52 per share to as little as $1 per share later this year. Additionally, JPMorgan has lowered their price target from $23 per share to just $16.Sparked by the downgrade, shares of Potash Corporation of Saskatchewan (USA) (NYSE:POT) have hit new multi-year lows of $14.64 before bouncing back slightly. At the current $1.52 dividend, the stock pays a yield in excess of 10.2%. While the company’s earnings are strong, 2016 is expected to be a weaker year for the company before earnings are propped back up in 2017 and 2018, according to consensus estimates. ‘##metarobot=’index’##newskw=’Zafgen Inc positive news,Zafgen Inc – (NASDAQ:ZFGN),NASDAQ:ZFGN Analyst rating analysis,Stock Analysis,Outlook and potential,ZFGN Price change and trend,ZFGN stock update’##sitemap=’include’##skipsocial##stockticker=’NYSE:POT’#

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