After J.P. Morgan and SunTrust Robinson gave TRONOX Ltd (NYSE: TROX) a Buy rating last month, the company received another Buy, this time from Alembic Global. Analyst Hassan Ahmed maintained a Buy rating on TRONOX Ltd today and set a price target of $19. The company’s shares opened today at $11.20.
Ahmed noted:
“We believe these two factors produced an EBITDA hit of USD31m, explaining the Q1 miss. Management guided to Q2’19 EBITDA, ex-Cristal, of USD125-135m versus current consensus of USD187m. In our view, consensus isn’t “apples-to-apples,” as we suspect it includes Cristal in the mix but does not exclude the Ashtabula, OH, facility. Near-term fundamentals commentary was upbeat; management said pigment markets in Europe and Asia are stabilizing, inventories are normalizing as destocking runs its course, and North American market conditions remain resilient. On a post-Cristal acquisition basis, Tronox stated that it is in an advantaged position to benefit from both and feedstock integration.”
According to TipRanks.com, Ahmed is ranked 0 out of 5 stars with an average return of -7.8% and a 31.1% success rate. Ahmed covers the Consumer Goods sector, focusing on stocks such as Westlake Chemical Corp, Venator Materials Plc, and LyondellBasell.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for TRONOX Ltd with a $17.17 average price target.
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The company has a one-year high of $21.04 and a one-year low of $6.46. Currently, TRONOX Ltd has an average volume of 1.58M.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TROX in relation to earlier this year.
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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.
