- The prices of fertilizers have soared since the beginning of the war in Ukraine, followed by Belarus’ potash sanctions, and the Russian & Chinese fertilizer export ban.
- Price was the element that caused IPI’s potash sales to increase by 30% YoY in the first quarter of 2022.
- In April and May 2022, the average weekly prices of potash were higher than in 1Q 2022. Thus, I expect IPI’s sales will increase in the second quarter of 2022.
- IPI’s debt is well beneath its equity level and thus leads to better leverage conditions at the end of 2022.
- Using the CCA method, I estimate that the stock is undervalued and has more than 56% upside potential to reach $100.
For further details see:
Intrepid Potash: It Is The Right Time To Buy The Stock