ICL’s Mixed Performance and Market Challenges Justify Hold Rating

Analyst Joel Jackson of BMO Capital reiterated a Hold rating on Icl (ICL – Research Report), with a price target of $6.50.

Joel Jackson has given his Hold rating due to a combination of factors impacting ICL’s performance. The company’s Q1 results showed a miss in adjusted EBITDA and EPS compared to consensus estimates, primarily due to lower potash sales volumes and higher costs. Despite a slight increase in realized potash prices, ICL’s performance lagged behind competitors, as they continued to sell at lower contract prices in key markets like China and India.
Additionally, while there were positive outcomes in the IP/bromine segment with strong flame retardants volumes, the overall outlook for the company’s specialties and phosphate solutions remains mixed. The potash order book is expected to catch up in the latter half of the year, but current estimates for 2025 have been slightly lowered due to anticipated margin pressures. These factors contribute to the view that ICL is fairly valued at present, justifying the Hold rating.

According to TipRanks, Jackson is a 4-star analyst with an average return of 5.7% and a 55.19% success rate. Jackson covers the Basic Materials sector, focusing on stocks such as Mosaic Co, Compass Minerals International, and Albemarle.

In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $7.00 price target.