KeyBanc Reinstates Coverage on Compass Minerals International (CMP) at Hold; Share Price Reflects Solid Businesses and Returns

KeyBanc reinstates coverage on Compass Minerals International (NYSE: CMP) with a Hold.

KeyBanc analyst says, "CMP is in an enviable situation, with leading market positions in its core North American and the U.K. salt markets and the North American sulphate of potash (SOP) market. The salt businesses provide a steady base of earnings and cash flow, given the largely non-discretionary nature of the products provides and offers CMP average annual price and volume growth in the low to mid single digits. In contrast, the Specialty Fertilizers segment provides a growth platform with its capacity expansion projects. Moreover, the Company enjoys a cost base advantage given lower cost production at both its Goderich, Ontario salt mine and its Great Salt Lake SOP solar evaporation facility. With planned capacity expansions (both internally and through acquisition) completed and more on the way, combined with the Company's solid operational track record, we feel that CMP is a high quality company that will likely have steady earnings even in a slowing or low growth economy. With that said, we feel that upside in CMP's share price may be limited given the negative effects on capacity from weather-related issues and current valuation. Given this, we feel comfortable starting out on the sidelines."

For more ratings news on Compass Minerals International click here and for the rating history of Compass Minerals International click here.

Shares of Compass Minerals International closed at $74.46 yesterday.

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