October 6, 2008 / 5:24 PM / 11 years ago

REFILE-UPDATE 1-Scotia, UBS cut targets on Potash Corp, Agrium

(Corrects to add $ sign in paragraph 4)

(Recasts; adds details, in U.S. dollars unless noted) Oct 6 (Reuters) - Two brokerages slashed their price targets on fertilizer producers Potash Corp of Saskatchewan POT.TO and Agrium Inc AGU.TO, citing a fall in prices of diammonium phosphate (DAP), potash and urea.

Scotia Capital and UBS cut their price targets on the shares of Agrium to C$80 and $80, from C$114 and $135, respectively.

Scotia cut its target on Potash Corp’s stock to C$150 from C$237, while UBS reduced its price target to $180 from $308.

Shares of Agrium fell C$4.42 to C$39.30, while those of Potash Corp fell C$11.01 to C$91.20 Monday on the Toronto Stock Exchange.

Analyst Sam Kanes of Scotia Capital cut his 2009 DAP price forecast by $200 per ton to $950 per ton and potash realized price to $860 per ton from $950 per ton FOB Saskatchewan mine site. He kept his urea forecast unchanged at $500 per short ton.

Credit restrictions will likely delay some fertilizer buying, he said.

“Liquidation of reseller fertilizer inventories is underway while new buying has dried up as fertilizer prices fall due this off-season,” said Kanes.

He also cut his 2009 earnings estimate for Agrium to $10.00 a share from $11.70, and for Potash Corp to $13.75 a share from $18.00.

However, Kanes raised his rating on Agrium to “sector outperform” from “sector perform,” citing the recent fall in stock price. UBS, while keeping its “buy” rating on both the stocks, cut its 2009 earnings estimate on Agrium to $10.44 a share from $12.90, and on Potash Corp to $18.68 a share from $21.97. ($1=1.088 Canadian Dollar) (Reporting by Amiteshwar Singh in Bangalore; Editing by Amitha Rajan)

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