Soleil Starts Intrepid Potash (IPI) at Sell; $40 PT

Soleil Securities Group initiates coverage on Intrepid Potash (NYSE: IPI) with a Sell rating and a $40 price target.

The firm said the market is currently underestimating the risks associated with Intrepid Potash. Soleil points out that Intrepid Potash has "questionable asset quality and exposure to potential biofuels backlash with 96% of sales in the U.S" and believes that these negatives are not yet priced into the stock.

After pricing at $32 and opening at $51.62, shares of Intrepid Potash have since come down slightly. Shares closed at $48.07 yesterday. Soleil's $40 price target on Intrepid Potash represents a 17% decline from current levels.

Intrepid Potash, Inc. engages in the production and marketing of muriate of potash in the United States.

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