NEW YORK (AP) -- An analyst for Wunderlich Securities on Tuesday recommended that investors buy fertilizer maker Intrepid Potash Inc., saying demand is growing over the long term.
Intrepid is the country's largest producer of potash-based fertilizer, analyst Michael Hoffman said, but supplies less than 10 percent of U.S. demand. He thinks that as Intrepid Potash ramps up production, the U.S. market would buy more of the company's fertilizer.
Hoffman also said that while the outlook for fertilizer demand this fall and next spring remains unclear as farmers across much of the country grapple with ongoing drought conditions, increasing global demand should boost potash prices in the long term.
He set a "Buy" rating on the company and a $26.50 price target on its stock.
Shares rose 27 cents, or 1.1 percent, to $24.31 in morning trading Tuesday.
