JPMorgan Downgrades Compass Minerals International (CMP) to Underweight
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JPMorgan analyst Jeffrey Zekauskas downgraded Compass Minerals International (NYSE: CMP) from Neutral to Underweight with a price target of $62.00 (from $66.00).
The analyst comments "Our general view of the equities under our coverage is that we think there is more outperformance to be found in more cyclical equites than in less cyclical investments, and Compass has a steady salt business. We view Compass as a company with relative performance risk rather than absolute performance risk. Compass has a 4.7% dividend yield and a balance sheet with net debt to EBITDA just below 3.0x by the end of 2021 following the receipt of proceeds from asset sales. We think that its above-average dividend yield would be supportive of its share price in tough markets. Our price target of $62 is about equal to Compass's current share price and reflects a free cash flow yield between 5%-6%, which we do not view as high in the context of our overall coverage."
Shares of Compass Minerals International closed at $61.76 yesterday.
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