Freedom Broker lowers Intrepid Potash price target to $41 while keeping Buy rating

Freedom Broker lowered its price target for Intrepid Potash (NYSE: IPI) to $41 from $44 while maintaining its Buy rating on the shares. The adjustment was described as primarily a valuation-related re-rating call.

The firm forecasts third-quarter revenue of $56.2 million, EBITDA of $15.5 million and adjusted earnings per share of $0.58. It expects the period to be seasonally the weakest quarter of the year. The guidance implies potash sales of 55,000 to 65,000 tons at $380 to $390 per ton, alongside Trio volumes of 30,000 to 40,000 tons at $400 to $410 per ton.

Intrepid Potash’s management raised full-year production guidance for both products and reported its lowest Trio unit costs since the fourth quarter of 2019. The company also reduced its capital expenditure guidance to approximately $40 million.

The company completed the sale of South Ranch for $68.9 million, leaving it with $185 million in cash and no debt. Management expected share repurchases under the expanded $50 million authorization to begin in the third quarter. Net cash represents approximately 43% of the company’s market capitalization, while the shares trade at about three times estimated 2027 enterprise value to EBITDA.

Freedom Broker said management plans to provide a more substantive update on the Wendover lithium project later this year. The company is also continuing to evaluate investments in East underground Trio operations.

In other recent developments, Intrepid Potash reported second-quarter 2026 adjusted earnings of $0.56 per share, above the expected $0.31, while revenue reached $66.68 million compared with an estimate of $58.27 million. The company attributed the stronger margins to improved process control, higher production and better pricing.

The fertilizer sector has also faced market pressure following comments from President Trump about a potential potash agreement with Belarus. Intrepid Potash shares fell 4.5% alongside declines in other fertilizer producers, including Mosaic, Nutrien and CF Industries.

Sources: Investing.com News.