Compass Minerals International (CMP) PT Lowered to $65 at Stifel

Stifel analyst Vincent Anderson lowered the price target on Compass Minerals International (NYSE: CMP) to $65.00 (from $75.00) while maintaining a Buy rating.

The analyst comments "We are updating our estimates for Compass Minerals largely due to a below average snowfall recorded through 1Q20. With snowfall down 19.6% vs. the 10 year average and down 14.2% vs. the long term average, we have lowered our highway deicing volume tons for the quarter, offset in part by lower transportation expense and higher ASPs. We maintain our Buy rating but lower our price target from $75 to $65, lowering our EV/EBITDA multiple from 11.0x to 10.0x to reflect current market uncertainty and its potential impact of the timing of a potential PDQ divestment. However, we note that Compass Minerals' primary earnings drivers, salt and fertilizer, have little fundamental exposure to the current turmoil, and we believe offer investors a quality safehaven and 7% dividend yield."

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