UPDATE: KeyBanc Capital Markets Downgrades Intrepid Potash to Hold on Pricing Pressure
KeyBanc Capital Markets reduced its rating on Intrepid Potash (NYSE: IPI) from Buy to Hold.
KeyBanc Capital Markets commented, "We are lowering our rating of shares of IPI to HOLD from BUY primarily due to the downward pressure on MOP pricing. Currently, MOP pricing has dropped by approximately 17% year-over-year, with sequential declines of about 7% compared to the end of 3Q12. With the global market still soft, we do not expect this trend to change in the near term. As IPI is a price taker, with the three large Canadian producers setting pricing in the market, we expect that this will negatively impact results over the next few quarters as lower prices will pressure its gross margin, offsetting operational improvements."
Intrepid Potash closed at $22.63 on Friday.
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Tags: KeyBanc Capital Markets