Morgan Stanley Lowers PT On IPI To $37

Morgan Stanley has lowered its price target on Intrepid Potash IPI from $41 to $37 based on below expected 1Q11 results. According to Morgan Stanley, “Intrepid's 1Q11 results came in just below our expectations largely as a function of higher than forecasted COGS in both langbeinite and potash. Importantly, potash sales volume and sales price were essentially inline with our expectations. We are reducing to 2011 EPS model (discussed inside) largely as a function of COGS and price realization assumptions that we now believe were too aggressive on our part.” Morgan Stanley maintains an Equal-Weight rating on the stock. IPI closed yesterday at $30.96.