Potash Corp. (NYSE:POT) Lowers Capital Costs

Barclays (NYSE:BCS) raised their price target on Potash Corp. (NYSE:POT) as the company lowered capital costs by reducing debt and buying back shares.

"Share Buyback and Added Debt Reduces Overall Cost of Capital: We have made changes to our model to reflect POT's new capital structure. In our opinion, the new debt added to the balance sheet is of a lower cost than the equity capital that will be cancelled. As a result, we have reduced our weighted average cost of capital estimate for POT to 7.1% from 8.1% and have increased our NAV and price target for POT to $165/sh," said Barclays.

They maintain their "Overweight" rating on Potash, which closed Wednesday at $138.71, down $3.16, or 2.23 percent. Barclays raised their price target from $160 to $165.