KeyBanc Starts Innophos Holdings (IPHS) at Buy; Compelling Investment Opportunity

KeyBanc initiates coverage on Innophos Holdings (NASDAQ: IPHS) with a Buy. PT $5.00.

KeyBanc analyst said, "We view IPHS as a compelling investment opportunity given: 1) a relatively defensive portfolio positioned toward consumer-oriented end markets with effectively no European exposure; 2) market leading positions in a fairly consolidated industry with high barriers to entry; 3) a strong balance sheet and free cash flow generation, which can be deployed to augment organic growth via acquisitions; and 4) attractive valuation for a specialty chemical company with sustainable mid-teens operating margins and after tax returns on capital. Additionally, we believe near-term earnings headwinds are understood and we see a good case for solid earnings growth in 2013 and beyond."

Sees FY12 EPS at $3.65, FY13 at $4.00 and FY15 near $4.80 levels.

For an analyst ratings summary and ratings history on Innophos Holdings click here. For more ratings news on Innophos Holdings click here.

Shares of Innophos Holdings closed at $48.00 yesterday.

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