The Globe and Mail reports in its Saturday edition that UBS analyst Brian MacArthur has upgraded Potash Corp. of Saskatchewan ($41.49 (Canadian)) to "buy" from "neutral." The Globe's Luke Kawa, Tim Shufelt, Jody White and Darcy Keith write in the Eye On Equities column that Mr. MacArthur likes Potash's improving free cash flow and the downside protection the stock's dividend provides. He says: "POT is positioned to benefit from a significant ramp-up of low cost production through 2017 as its new Rocanville and Picadilly operations enter production. In the near term, the planned closure of Mosaic's Carlsbad operations in January, 2015, and the current flood at Uralkali's Solikamsk-2 mine could remove up to 2.4-3.4 million tonnes of combined capacity from the market and provides the opportunity for POT to gain more volumes. ... This could also lead to higher pricing." Mr. MacArthur believes Potash's 4-per-cent yield provides downside protection given "the dividend can be funded even if potash prices remain flat. The analyst believes management may be able to "return excess cash to shareholders through an increased dividend or further share repurchases." He raised his target by $2 (U.S.) to $40 (U.S.).