Deutsche Bank says that Israel Chemicals is up 35% in the last three months and believes that it is now fairly valued.
Deutsche Bank has downgraded its rating for Israel Chemicals (TASE: CHIM) from “Buy” to “Hold.” The bank says Israel Chemicals is up 35% in the last three months and believes that it is now fairly valued.
“Fertilizer stocks globally have rallied sharply over the last few months, yet during this period Israel Chemicals has moved from trading in line with peers to trading at a slight premium. We remain positive on 2007 and we continue to expect potash prices and volumes to increase next year,” Deutsche Bank writes in its review, adding that Potash prices have remained stable since the third quarter of 2005, despite the demand crisis of 2006 (the “potash war” with the Chinese, G.S.).
As for the bromine segment, Deutsche Bank writes, “We see a more challenging environment next year, with the potential for muted flame retardant demand as the electronics industry enters a cyclical downturn.” This has been seen in lower sales for chipmakers in Taiwan.
Published by Globes [online], Israel business news - www.globes.co.il - on December 11, 2006
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