BUZZ-Mosaic, Potash Corp: JP Morgan downgrades stocks to "neutral"

Mon Jan 25, 2016 1:19pm EST
 
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** Potash miner's U.S.-listed shares down 6.7 pct at $15.02 after nearly touching 9-year low of $14.64, Mosaic down 4.6 pct at $21.43 after falling to 7-year low of $22.16

** Potash Corp's Toronto-listed shares down 7.3 pct to C$21.10

** J.P. Morgan Securities downgrades both companies to "neutral" from "overweight"

** Cuts Potash PT to $16 from $23; Mosaic to $24 from $40

** "We think there is a reasonable probability that Potash Corp will reduce its dividend from $1.52/shr to $1.00/shr in the course of 2016," JP Morgan analysts write

** Potash would have been able to more or less finance its dividend without borrowing, despite a drop in potash prices, but nitrogen prices have also moved lower sharply, they say

** Up to Monday's close, shares of both companies have lost nearly half their value in the last 12 months