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Soleil Securities Downgrades Intrepid Potash (IPI) to Sell; Lowers Estimates

May 11, 2009 9:25 AM EDT
IPI Hot Sheet
Rating Summary:
    4 Buy, 6 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Soleil Securities downgrades Intrepid Potash (NYSE: IPI) from Hold to Sell. Price target increased from $18 to $20.

Soleil analyst says, "Downgrade to Sell from Hold on price basis as the stock has exceed our prior $18 target and is now selling at a substantial premium to Potash Corp (NYSE: POT) (Hold) and Mosaic (NYSE: MOS) (Hold) on a replacement cost basis. Reducing '09E to $1.81 from $1.93 and '10E to $2.43 from $2.53 due to lower potash production and a resulting margin squeeze on unabsorbed fixed costs. Increasing price target to $20 from $18 on less conservative valuation assumptions."

Intrepid Potash, Inc (Intrepid) is a producer of muriate of potash (MOP). The Company is engaged in the production and marketing of potash and langbeinite (sulfate of potash magnesia), another mineral that contains potassium.

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