Fertilizer giant Potash Corp. (POT) on Friday caught some further negative commentary from analysts at Dahlman Rose.

The firm reiterated its “Sell” rating on POT and cut its price target from $41 to $38. That new target suggests zero upside to the stock’s Thursday closing price of $37.91.

A Dahlman Rose analyst commented, “We are reducing our 2012 estimates for POT to $3.11/share. We are also introducing a 2013 earnings estimate of $3.50/share which is below the current consensus of $3.83/share. Our 2012 estimate is also below the company issued guidance of $3.20-3.60/share. Our below guidance estimate represents our belief that the large corn crop is expected in the US, the likelihood of sluggish potash export markets for the remainder of the year and above normal potash industry inventories will contribute to weaker potash prices than guided to by the company as well as the possibility of mine shutdowns or production curtailments later this year. In addition, we see sizable declines possible in nitrogen prices as the North American planting season winds down in 2Q12.”

Potash shares were mostly flat in premarket trading Friday.

The Bottom Line
Shares of Potash Corp (POT) have a 1.48% dividend yield, based on last night’s closing stock price of $37.91. The stock has technical support in the $30-$33 price area. If the shares can firm up, we see overhead resistance around the $40-$43 price levels.

Potash Corp. (POT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

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