The company's share jumped 3.5% in morning trading on the TASE.
Leader Capital Markets analyst Yoav Burgan today gave Israel Chemicals Ltd. (TASE: ICL) a "Buy" recommendation and raised his target price 60% to NIS 110, a 75% premium over yesterday's closing price. The share rose 3.5% to NIS 65.52 in morning trading today.
Burgan believes that the recent correction in agrochemical shares in global markets was more extreme than the previous corrections that have characterized the sector's unprecedented rally so far this year. He says that there is no fundamental reason for a U-turn in the rally. "We believe that even if the drops are 'worrying' in terms of core prices, things should be taken in proportion. Corn and soy bean prices have merely 'calmed down' slightly and reverted to their levels at the beginning of June, after reaching all-time highs in mid-month," he wrote.
As for concerns about extra potash supplies planned by major producer Potash Corporation of Saskatchewan Inc. (NYSE; TSX: POT), Burgan says that it is enough to listen to what Potash CEO William Doyle said in an interview about his conviction that potash demand will continue to grow.
Published by Globes [online], Israel business news - www.globes-online.com - on July 22, 2008
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