Analyst Joel Jackson from BMO Capital maintained a Hold rating on Compass Minerals International (CMP – Research Report) and decreased the price target to $17.00 from $18.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Joel Jackson has given his Hold rating due to a combination of factors influencing Compass Minerals International’s financial outlook. The company’s recent earnings report showed a significant miss in expected EBITDA for the first quarter, with adjusted EBITDA reaching only $32 million compared to the consensus of $42 million. This shortfall was largely driven by lower than expected salt volumes and increased costs, despite a seemingly typical winter season.
Additionally, the management’s guidance for fiscal year 2025 reflects a decrease in EBITDA expectations by about 9%, including a reduction in salt volume projections. While there have been some positive movements, such as slight increases in pricing and plant nutrition EBITDA, challenges remain with high-cost inventory and corporate expenses. These factors contribute to a neutral risk/reward scenario, leading to the Hold rating as the company works to improve its balance sheet and operational efficiencies over time.
According to TipRanks, Jackson is a 4-star analyst with an average return of 5.7% and a 54.20% success rate. Jackson covers the Basic Materials sector, focusing on stocks such as Compass Minerals International, FMC, and Corteva.