Tronox ( NYSE: TROX ) and Chemours ( NYSE: CC ) on Tuesday were both rated Underperform by analysts at Credit Suisse as they began research coverage of U.S. chemical makers.
Because Tronox and Chemours produce mineral-based chemicals such as titanium dioxide pigments, they are less exposed to rising prices for petroleum as a raw material, accoring to the investment bank. Demand for titanium dioxide can fluctuate with industrial output of products such as paints, plastics and paper.
Credit Suisse set a price target of $24 on Chemours, and $10 for Tronox.
Chemours this year had fallen 16%, compared with a 20% decline for the S&P 500 index ( SP500 ), to $28.62 a share at the market close on Oct. 31. Tronox this year has lost about half its value with a 51% decline to $12 a share through same period.
Chemours last week reported adjusted net income of $196 million, or $1.24 a share, to beat estimates by $0.17 for Q3. Net sales rose 6% from a year earlier to $1.8 billion with stronger pricing for its products, partly offset by the stronger U.S. dollar.
Tronox last week reported Q3 adjusted EPS of $0.69, missing estimates by $0.06, while revenue was in line with estimates at $895 million. Company management provided full-year 2022 guidance for adjusted EBITDA of $902 million to $932 million, and adjusted EPS of $2.29 to $2.42.
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Tronox, Chemours both rated Underperform as Credit Suisse starts coverage