KeyBanc Downgrades Intrepid Potash (IPI) to Hold, Cites Pressure on MOP Prices

January 7, 2013 10:36 AM EST
Get Alerts IPI Hot Sheet
Price: $1.79 -1.1%

Rating Summary:
    4 Buy, 10 Hold, 8 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Earlier, KeyBanc downgraded Intrepid Potash (NYSE: IPI) from Buy to Hold primarily due to the downward pressure on MOP pricing.

The firm comments, "Currently, MOP pricing has dropped by approximately 17% year-over-year, with sequential declines of about 7% compared to the end of 3Q12. With the global market still soft, we do not expect this trend to change in the near term. As IPI is a price taker, with the three large Canadian producers setting pricing in the market, we expect that this will negatively impact results over the next few quarters as lower prices will pressure its gross margin, offsetting operational improvements."

The firm lowered 2012 EPS estimate to $1.22 (previously $1.24) and 2013 EPS estimate to $1.10 (previously $1.40).

For an analyst ratings summary and ratings history on Intrepid Potash click here. For more ratings news on Intrepid Potash click here.

Shares of Intrepid Potash closed at $22.63 yesterday.

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