JP Morgan upgrades Compass Minerals to overweight

JP Morgan has raised Compass Minerals’ rating from “neutral” to “overweight”, saying it offers high free cash flows and healthy earnings momentum from a stable base.

Reuters - 

J.P. Morgan Securities upgraded Compass Minerals International Inc to "overweight" from "neutral," saying the company offers investors high free cash flows and healthy earnings momentum from a stable base.

"Its defensive business profile is largely insensitive to changes in GDP growth, credit market stability, energy costs, currency volatility, or import competition," analyst David Silver wrote in a note to clients.

The analyst raised his 2008 and 2009 earnings estimates for the company, which produces inorganic minerals and provides highway deicing salt, due to improved salt profitability, and said he expects continued dividend increases. The company's shares, which have shed 44 percent over the past three months, closed at $42.28 Thursday on the New York Stock Exchange.

"We think the current share price represents solid value and a lower-risk alternative in turbulent markets," Silver said. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Deepak Kannan)

© Thomson Reuters 2008 All rights reserved

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