BMO Capital Lowers PT On CMP

BMO Capital has lowered its price target from $92 to $90 on Compass Minerals CMP but is maintaining its Market Perform rating on the stock. Says BMO Capital, in its report, “In tracking Highway Deicing bid season awards and tenders, including the recent release of details from two large road salt contracts in Chicago and Southwest Ohio, we believe bid season gross price growth is tracking 2-3% versus our prior 4% estimate. As a result, Highway Deicing ex-mine netbacks could be flat to down this winter with yr/yr increases in fuel costs. Interestingly, it appears CMP was not awarded a rock salt contract by Chicago for the first time in many years, after bidding on average 25-30% over the various winning bids. Owing to the nature of the Chicago contract with built-in options, it is possible CMP may not have a contract with Chicago for five years. Our Canadian data points are limited this early into bid season.” CMP closed yesterday at $88.28.