J.P. Morgan Dropping Coverage On Innophos (IPHS)

J.P. Morgan Chase is dropping coverage on Innophos Holdings, Inc. IPHS. Its last rating on the stock was Neutral. In the last research report, J.P. Morgan Chase writes, "produces specialty phosphates, which are used in personal care, food & beverage, pharma, and industrial applications. Innophos uses the same raw materials as are used in phosphate fertilizer production, but the company is not vertically integrated into phosphate rock sources. Innophos had purchased its phosphate rock requirements from a single source, with a price lag feature in the contract, which led to significant fluctuations in the cost structure and profitability in the past three years. The company is now moving to multiple source rock suppliers: rock prices are expected to reflect market trends when new agreements come into effect in 2010." Shares of Innophos Holdings, Inc. closed at $27.95 yesterday.