With ice control being a major part of Compass Minerals (NYSE:CMP) business in the colder months, the cold winter this year should help them in the North American and British markets.
Soleil said, "Old-man-winter. Anecdotal evidence suggests that the '10-'11 winter is off to a strong start for the month of December 2010, in both North America and the U.K. This should boost Compass' ice control earnings, one third of company total...We increase our price target to $100 (from $88), on rolling out our 2012E EPS estimate of $6.91, which is now our out-year forecast...SOP follows MOP. Compass is a price follower in specialty potash, 25% of its earnings, and we assume it attempts to maintain a price premium over MOP of $150-200/short ton. It has announced three SOP price increases during 4Q10E that total to $80/short ton (15%), and should be realized through 1QF11E."
Soleil Securities maintains a "Buy" rating on Compass Minerals International, which was trading at $87.96, down $0.74, or 0.83 percent, as of 12:07 PM EST. Soleil raised their price target on them from $88 to $100.
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