8 Ag Chem Stocks With Upside Up to 128%: Analysts

6. Potash Corporation of Saskatchewan (POT), an integrated fertilizer and related industrial and feed producer, owns and operates five potash mines in Saskatchewan and one in New Brunswick. It also holds mineral rights in a mine where potash is produced under a third-party agreement. The company operates a phosphate mine and two mineral processing plants in northern Florida and six phosphate feed plants in the U.S.

Potash Corp is the world's largest producer of fertilizer and contributes about 20% of the global supply. The company estimates potash demand to rise to 60 million tons in 2011 from 52 million tons in 2010. Furthermore, the industry's operational capability stands at 61 million tons. For the first quarter of 2011, the company reported net income (pre-split) per share in the range of $2.10 to $2.70 and full year in the range of $8.40 to $9.60.

Heading into 2011, the company expects global potash shipments to reach 55 million to 60 million tons from 52 million tons in 2010. North American demand is likely to reach historical highs of 10 million tons in 2011. Capital expenditure for next year is seen at $2 billion, with $1.4 billion related to ongoing potash expansion projects.

Of the 28 analysts covering the stock, 64% recommend a buy while 32% suggest a hold. Analysts polled by Bloomberg foresee the stock gaining an average 13.2%, to $66.7, in the upcoming 12 months.

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