:max_bytes(150000):strip_icc()/GettyImages-1233727496-ad2a8b433dae40bb936ef54019cc291d.jpg "Chemours Rises as UBS Upgrades Stock To ‘Buy’")
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Key Takeaways
- UBS upgraded chemicals company Chemours, arguing that the market has been too negative on the stock, which it believes can outperform.
- The analysts raised their rating to “buy,” and increased the price target by $2.
- UBS said Chemours will benefit from higher profits from colorant titanium dioxide (TiO2) and demand for its next-generation refrigerants.
The Chemours Co. (CC) shares gained in intraday trading Tuesday following an upgrade from UBS analysts, who said investors have been too negative on the chemical maker’s stock.
Shares of Chemours rose about 2% to $22.75 as of 2 p.m. ET Tuesday after UBS raised its rating on the company to “buy” from “neutral,” and increased its price target to $30 from $28.
UBS Sees Improving TiO2 Earnings, Refrigerants Demand
The analysts said they see potential for the stock to outperform amid “a more normal level of earnings” for colorant titanium dioxide (TiO2) and “favorable demand/price drivers in refrigerants into 2025.”
The analysts argued that Chemours’ TiO2 volumes have been down in part because of one-time issues this year, and they expect them to catch up to competitors over the next year. Because of that, they see TiO2 profits “to improve sequentially through this year.”
The analysts added that regulatory efforts to fight global warming will drive demand for lower-emitting coolants, which “should disproportionally benefit” Chemours’ next-generation hydrofluoroolefins (HFO) refrigerants.
Even with today’s gains, Chemours shares have still lost more than a quarter of their value in 2024.