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Barclays Maintains an 'Underweight' on Intrepid Potash (IPI); Q3/2011 Preview - Expecting Price Increases in Potash and Langbeinite

October 26, 2011 1:56 PM EDT
IPI Hot Sheet
Rating Summary:
    4 Buy, 6 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Barclays maintains an 'Underweight' on Intrepid Potash (NYSE: IPI) price target of $30.00.

Barclays analyst says, "IPI will report Q3 2011 results after market close on Wednesday November 2, 2011. We are forecasting earnings of $0.36/sh in line with consensus."

"Potash Sales Affected by Logistical Issues: IPI pre-released its Q3 2011 sales and operating results on October 13, 2011. The company is expecting to sell 185,000 - 195,000 tons of potash (production of 165,000-175,000 tons), while we are estimating sales volumes of 190,000 tons. The pre-release also offered potash sales price guidance of $485-495/ton for the third quarter; we are looking for $490/ton."

"Langbeinite Sales In-line with Last Years Quarter: On the langbeinite side, IPI is forecasting sales of 50,000-55,000 tons of Trio for Q3, with production of approximately 30,000-35,000 tons, while we are expecting sales volumes of 53,000 tons."

For more ratings news on Intrepid Potash click here and for the rating history of Intrepid Potash click here.

Shares of Intrepid Potash closed at $27.52 yesterday, with a 52 week range of $22.47-$40.22.


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