Estimates Reduced For CMP
JP Morgan has issued a research report on Compass Minerals International (NYSE: CMP) after reducing estimates for the company due to lower SOP income.
In the report, JP Morgan writes "Compass is likely to deliver moderate levels of profits in the near term, exclusive of positive surprises from winter weather. Prices in its North American highway de-icing business are flat for the winter season (vs. 20% increase in 2008 2009 and 8% increase in 2009-2010); demand is about (3%) yoy lower, reflecting high inventory levels following a milder than normal prior winter. The specialty potash market is recovering with demand returning to more normal levels, while realized selling prices are lagging announced price increases reflecting a higher portion of lower-priced international sales. We reduced our earnings expectations for 2010 from $5.25 to $4.65 to reflect lower Salt profits due to weaker de-icing volumes and prices, and somewhat lower SOP income because of a less profitable geo mix. We lowered our 2011 EPS forecast from $6.05 to $5.40 and our 2012 EPS projection from $6.65 to $6.20."
JP Morgan maintains its Neutral rating and has raised the price target from $72 to $74.
Compass Minerals International closed yesterday at $79.77.
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