Stifel downgrades its recommendation on K+S from 'hold' to 'sell', with a price target reduced from 14 to 12.5 euros, believing that it 'should report solid EBITDA and FCF for the first quarter, but the trend in the coming quarters could worsen'.

The approaching end of the season in the northern hemisphere and high inventories in China and Brazil imply risks of falling potash prices", points out the broker in its note on the German potash and rock salt supplier.

Stifel expects FCF to be close to zero until 2026, a forecast that already includes an extension of investments for the Werra project by one more year, and believes that over this period, the dividend could be at the minimum level of 0.07 euro.

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