Dahlman Rose & Co. Raises Potash Corp. Estimates

Given improving fundamentals, is raising its Potash Corporation of Saskatche (NYSE: POT) 4Q10 estimate to $1.58 (prior $1.30) driven by higher volumes and pricing.

“We have also raised our FY11 estimate by $1.93 to $7.95 (prior $6.02) driven by higher potash volumes to 9.2 MM mt (prior 8.3 MM mt) and higher net realized potash prices of $374/mt (prior $342/mt),” Dahlman Rose & Co. writes. “We have also raised our price deck for the phosphate and nitrogen segments and expect these units to generate total gross margins of ~$930 MM (prior ~$770 MM).”

As such, Dahlman Rose & Co. said that it is maintaining its Hold rating and expect volatility in the shares over the coming quarters as the ultimate outcome is reached regarding the outstanding takeover bid.

Potash Corp. closed Friday at $145.09.