BMO Capital analyst Joel Jackson reiterated a Hold rating on Compass Minerals International yesterday and set a price target of $20.00.
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Joel Jackson has given his Hold rating due to a combination of factors that reflect both opportunities and challenges for Compass Minerals International. While the company reported a solid third quarter performance with EBITDA exceeding expectations, the growth was primarily driven by the Plant Nutrition segment rather than the core salt business. The anticipated improvements in salt and Plant Nutrition costs are expected to materialize by 2026, but there is uncertainty about whether the projected price increases in rock salt will lead to significant margin expansion.
Furthermore, while the company’s guidance for fiscal year 2025 has been slightly raised, the increase is largely attributed to the Plant Nutrition segment, with the salt segment showing only modest growth. The muted results from the rock salt bid season and ongoing efforts to manage salt inventory and improve financial metrics suggest a balanced risk-reward scenario. Consequently, Joel Jackson maintains a neutral stance, reiterating a target price of $20 and a Market Perform rating, indicating a cautious outlook amidst mixed signals from different segments of the business.
Jackson covers the Basic Materials sector, focusing on stocks such as Cf Industries Holdings, Mosaic Co, and FMC. According to TipRanks, Jackson has an average return of 5.8% and a 56.14% success rate on recommended stocks.
In another report released on July 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $19.50 price target.