Saturday, December 29, 2007
Israel Chemicals: 30% Expected
Israel Chemicals is our local Potash (POT). Goldman Sachs analyst Edlain Rodriguez said Potash will be able to raise prices because of strong demand and tight supply. "Despite the strong run-up in the stock, we believe there is further upside potential, based on the constant upward earnings revisions that will likely continue in the near-term because of Potash's ability to raise prices due to strong demand and tight supply," Rodriguez wrote in a client note. Rodriguez's new price target is $180, from $122 previously, which implies upside of 25.5 percent to Wednesday's $143.41 closing price. I believe he is right.