CC - Chemours downgraded to Hold by Argus on falling demand for chemicals

Chemours ( NYSE: CC ) on Wednesday was downgraded to Hold from Buy by analysts at Argus Research. The firm cited weaker economic conditions, rising costs of raw materials and falling demand for titanium dioxide for the rating change.

Chemours two weeks ago cut its EBITDA and free cash flow guidance for 2022 , pointing to weakness in Asia and Europe. Management said it would extend a scheduled outage for one of its Titanium Technologies production lines and cut other costs.

Titanium dioxide, a mineral used as a white pigment in a variety of products, makes up more than 50% of Chemours’s business, according to Argus.

Chemical producer Tronox ( TROX ) also lowered its guidance because of softer demand for titanium dioxide.

Analysts at Barclays last week cut their earnings estimates for Chemours, Tronox and Kronos ( KRO ) following the updated guidance.

Chemours has declined 22% this year, in line with the 22% drop for the S&P 500 Stock Index ( SP500 ).

Seeking Alpha columnist Evin Rohrbaugh rates Chemours ( CC ) as a Hold on its valuation and business outlook . Contributor Wolf Report has a Buy rating on Chemours ( CC ) on the possibility of longer-term gains .

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