NEW YORK (TheStreet) -- Compass Minerals (CMP) shares were upgraded to "overweight" from "neutral" by analysts at JPMorgan Chase (JPM) on Wednesday.
The firm raised its price target to $99 from $76, suggesting a 12.5% increase from the company's closing price yesterday.
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Separately, TheStreet Ratings team rates COMPASS MINERALS INTL INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate COMPASS MINERALS INTL INC (CMP) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, notable return on equity, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 7.9%. Since the same quarter one year prior, revenues rose by 45.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- COMPASS MINERALS INTL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, COMPASS MINERALS INTL INC increased its bottom line by earning $3.89 versus $2.65 in the prior year. This year, the market expects an improvement in earnings ($4.20 versus $3.89).
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Metals & Mining industry and the overall market, COMPASS MINERALS INTL INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- Net operating cash flow has significantly increased by 393.33% to $96.20 million when compared to the same quarter last year. In addition, COMPASS MINERALS INTL INC has also vastly surpassed the industry average cash flow growth rate of -48.79%.
- CMP's debt-to-equity ratio of 0.86 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.44 is sturdy.
- You can view the full analysis from the report here: CMP Ratings Report
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