In a report released yesterday, John McNulty from BMO Capital maintained a Hold rating on TRONOX (TROX – Research Report), with a price target of $13.00.
John McNulty has given his Hold rating to TRONOX due to a mixture of elements that have influenced the performance of the company. In McNulty’s analysis, TRONOX has experienced a significant decrease in EBITDA by 53%, largely due to a combination of factors such as struggles early in the year with higher-cost ores, destocking in the TiO2 industry, and a decrease in zircon volumes. Furthermore, the company’s sales have fallen by 26%, which is a greater decrease than initially forecasted. He also highlights the company’s reduction in free cash flow due to the decline in sales and the ongoing need to run the mining operations.
Looking ahead, McNulty is cautious about TRONOX’s future performance. While he acknowledges that the company’s management is predicting flat earnings for the fourth quarter, he sees potential risks to the consensus. He also points out that the company’s stock has fallen nearly 25% since the end of August, with investors fearing a slow recovery and continued destocking in the industry. Despite this, McNulty believes the stock is stable and will perform in line with the market. However, he cautions that the outlook for TiO2 pricing in the coming quarters could worsen, which may limit the company’s profitability and contribute to his neutral risk/reward assessment.
TROX’s price has also changed moderately for the past six months – from $12.640 to $10.430, which is a -17.48% drop .
See the top stocks recommended by analysts >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
TRONOX (TROX) Company Description:
Tronox Holdings Plc engages in the mining and inorganic chemical business. Its products include Titanium Dioxide Mineral Sands. The firm also mines and processes titanium ore, zircon and other minerals, and manufactures titanium dioxide pigments. The company was founded in March 2012 and is headquartered in Stamford, CT.
Read More on TROX:
