Freedom Broker Assesses Prospects for Four Small-Cap Companies

New capacity, sales of additional services, and resilient demand for industrial products could support the results of smaller U.S. companies. Freedom Broker analysts reviewed four such businesses in the small-cap company review published in the “Leadership Change” issue. Target prices are provided with a 12-month horizon.

United States Lime & Minerals: Production Expansion

United States Lime & Minerals (USLM) produces lime and limestone for construction, industry, and other sectors. Analysts highlight the launch of capacity in Texas and the absence of debt. Key risks include rising costs and weaker construction demand. Target price: $131.

LSB Industries: Demand for Ammonium Nitrate

LSB Industries (LXU) produces nitrogen fertilizers and industrial chemical products. The company operates three plants in the U.S. The outlook is supported by reallocating output toward ammonium nitrate. Risks are related to gas prices and downtime. The review’s target is $10,60.

Asure Software: Higher Revenue per Customer

Asure Software (ASUR) provides software solutions and services for payroll, HR, and tax accounting. Sales of additional products support business growth; however, customer acquisition and acquisition-integration costs weigh on profitability. Target price: $13.

CVR Partners: Payouts Depend on Cash Flow

CVR Partners (UAN) produces nitrogen fertilizers at two facilities. The company is structured as a partnership and distributes available cash to unitholders. The size of payouts depends on product prices, repairs, and debt service. In the review, the target is $124.

Earlier, Freedom Broker initiated coverage of fertilizer producers, including LSB Industries and CVR Partners. Analysts noted the cost advantage of North American facilities in terms of feedstock, but warned that normalization of fertilizer prices could limit profit growth.

This is not an individual investment recommendation.