* Potash demand will rebound in 2010, boosting shares

* Potash pricing likely to fall further, weigh on stock

TORONTO, Oct 27 (Reuters) - Potash Corp of Saskatchewan (POT.TO: Quote, Profile, Research) recently reported an 80 percent decline in quarterly profit, as fertilizer demand and pricing have collapsed from year-earlier levels.

The company, the world's largest producer of potash, still sees a rebound in demand for the crop nutrient in 2010, but cautioned that some of its potash production capacity will remain idle in 2010. [IDnN22505738]

Most analysts agree that the steepest decline in potash demand ever recorded is behind us, but questions on the viability of current pricing still linger.

Two analysts who recently initiated coverage of Potash Corp have conflicting views on the near-term prospects of the company's stock.

ROOM TO GROW

Genuity analyst Christine Healy has initiated coverage of Potash Corp with a "buy" rating and a C$130.00 price target.

"We believe Potash Corp's shares will move higher over the next 12 months, largely due to positive long-term industry fundamentals and an expected recovery in potash demand in 2010."