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UPDATE - UBS Initiates Coverage on Intrepid Potash (IPI) with a Neutral; "Inside the fence" Growth at a Fair Price

November 2, 2011 12:58 PM 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
UPDATE - UBS initiates coverage on Intrepid Potash (NYSE: IPI) with a Neutral. PT $28.00.

UBS analyst says, "The only North American potash pure play - Intrepid gets nearly all of its revenues from potash sales in the US, where it has a 9% market share. Although crop prices have moderated from their late-summer highs, they remain above long-term averages, and grain inventories are tight. Record-high farm income should support solid potash demand and prices in 2012."

"High prices, but high costs as well - With a freight cost advantage versus its Canadian peers for potash sales into the southern and western US agricultural markets, Intrepid realizes higher netback prices. However, this price advantage is partly offset by its cost disadvantage owing to lower-quality potash reserves. Even so, the company is solidly profitable at current potash prices."

To see more ratings changes on IPI, Click Here



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