Morgan Stanley Equalweight on Itrepid Potash

Morgan Stanley is out with a research report on Itrepid Potash (NYSE: IPI) and it has an Equal-Weight rating and a $37 price target on shares.

In a note to clients, Morgan Stanley writes, "Strong crop fundamentals and a tight global suppy/demand backdrop point to a sustainable period of expanded margins for Intrepid. However, in the near-term higher than expected turnaround and related maintenance expenses, and slower than previously anticipated potash price realization will likely negatively impact the F2011 and F2012 outlook. Additionally, 2012 CapEx, likely in the $350mm -$400mm range, is a hefty outlay with some uncertainty regarding the timing of the associated ROI."

Shares of IPI lost $1.95 yesterday to close at $25.67.