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Goldman Buy Spurs Israel Chemicals to Week High: Tel Aviv Mover

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July 24 (Bloomberg) -- Israel Chemicals Ltd., the second-worst performer on the country’s benchmark index this year, advanced after Goldman Sachs Group Inc. said the low valuation makes the fertilizer maker a “bargain.”

The shares of the Tel Aviv-based company that extracts minerals from the Dead Sea to make fertilizers and potash advanced 0.8 percent to 36.2 shekels at the close in Tel Aviv. The stock has declined 20 percent since Potash Corp. of Saskatchewan Inc. scrapped a proposed takeover bid for the chemicals maker earlier this year. That compares with a 1.6 percent rise in the TA-25 Index.

“There is a gap between ICL’s business fundamentals and the generally low valuation of the stock, which in our estimates presents an attractive opportunity,” Goldman said in an e-mailed report today. It raised its rating for the company to buy from neutral and set a price target of 53.1 shekels, up from 50 shekels.

Israel Chemicals shares were trading at 10.1 times estimated earnings versus 12.8 for Potash Corp. and The Mosaic Company, a producer of crop nutrients.

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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