JPM cuts K+S to 'neutral' on limited potash price upside
** J.P.Morgan cuts potash and salt miner K+S SDFGn.DE to "neutral" from "overweight" as it sees a balanced to looser global potash market in the medium term, limiting the upside to potash prices
** "K+S has shifted its product mix towards higher-margin specialty fertilizers in Europe, which supported margins, but further price increases for premium products seem unlikely due to stagnant farmer economics," it says
** JPM says potash prices have not benefitted from improved demand to the extent it had expected, in part due to shipments from Russia and Belarus returning to the global market sooner than expected
** It expects flattish mid-term earnings for the German group, projecting EBITDA of 563 mln euros ($621 million), 609 mln euros and 617 mln euros for 2024, 2025 and 2026 respectively
** "While the share price has already fallen 19% YTD to reflect these trends, and the valuation is cheap, we see limited upside to the share price from here," it adds
** Out of 21 analysts that cover K+S, six rate it "strong buy"/"buy", nine "hold" and six "strong sell"/"sell"
($1 = 0.9065 euros)
Reporting by Ozan Ergenay
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