VNTR - Venator earnings estimate lowered at Bank of America on cost pressures

Bank of America on Wednesday cut its earnings estimate for Venator Materials ( NYSE: VNTR ) as the chemicals maker faces higher costs. The bank slashed its EBITDA forecast for 2023 by 27% to $133 million as higher energy prices squeeze Venator's operations.

The lower earnings estimate led the bank to slash its price objective for the thinly traded stock in half to $1 a share. The new price forecast is based on raising the estimated enterprise value-to-EBITDA multiple to 6.5 times from 4.5 times, analyst Matthew DeYoe said in a research note.

Venator’s closing price was $1.80 a share on Aug. 30.

Seeking Alpha contributor Gold Panda has a Sell rating on Venator ( VNTR ) because of higher energy costs and supply-chain constraints .

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