The firm downgraded the company to "hold" from "buy" and lowered its price target to $16.75 from $21.
It appears that the ongoing pressure on fertilizer prices may adversely impact manufacturers, HSBC said in a note issued to investors this morning.
"The lack of industry visibility, higher volatility, and negative macro trends (crop prices and fertilizer affordability, general economic concerns, currency weakness) lead us to become more cautious in valuing the sector," analysts said.
Despite these industry headwinds, the firm added that Potash continues to have an "excellent potash positioning."
Based in Saskatoon, Canada, Potash produces and sells fertilizers, and related industrial and feed products worldwide.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C-.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles' author.
You can view the full analysis from the report here: POT