Compass Minerals: Why I Think The Market Is Mispricing The Recovery

Compass Minerals reduced its net debt by 16% to $638.9 million, brought its net leverage down from 4.6x to 2.7x. See why I rate CMP stock a Buy.

I am a Buy on Compass Minerals International, Inc. (NYSE: CMP) with a fair value range of $31-$36, and the current price is at $29.84. I believe that the market is still trading this stock as broken. It Summary - Compass Minerals International is rated Buy with a fair value range of $31–$36, reflecting 4–21% upside from current levels.

- Significant deleveraging, net leverage down from 4.6x to 2.7x, and S&P credit upgrade, positions CMP for multiple expansion. - Salt cost normalization and Plant Nutrition margin gains are key forward catalysts; Salt's counter-cyclical cash flows enhance CMP's relative appeal. - Risks include weather-driven Salt volumes, Salt unit-cost execution, and debt refinancing; lithium MOU offers free optionality but is not in the base case.