Upgrade Following “another better-than-expected” quarter and a third guidance raise of the year, Raymond James analyst Steve Hansen increased his financial projections for Itafos Inc. citing “robust/sustained phosphate price momentum, and [his] continued belief the company has a compelling path to deleveraging over the next 12-18 months.”
“Persistently tight phosphate markets and Itafos’ vastly improved earnings/FCF profile are poised to rapidly transform its historical balance sheet concerns,” he said. “This improved pathway, coupled with substantial upside optionality via the potential sale of non-core assets ($50-$100+-million), provides investors with a strong risk-reward profile, in our view.”
Maintaining an “outperform” rating, Mr. Hansen increased his target to $4, matching the consensus, from $3.75.