John McNulty, an analyst from BMO Capital, reiterated the Buy rating on Chemours Company (CC – Research Report). The associated price target remains the same with $27.00.
John McNulty has given his Buy rating due to a combination of factors that highlight the potential for Chemours Company’s growth and profitability. He notes that the company’s valuation appears undervalued at 5.8x 2025 EBITDA, suggesting that the current market conditions have not fully recognized the future earnings potential. The TSS segment, considered the ‘crown jewel’ of Chemours, is expected to experience medium to high single-digit growth driven by the shift from HFCs to HFOs, which is supported by regulatory changes worldwide.
Moreover, the aftermarket for HFO solutions is anticipated to grow, offering higher pricing compared to OEM pricing, which could significantly enhance profitability. Despite recent cost pressures due to increased R32 prices, McNulty believes Chemours will successfully pass these costs onto OEMs, thereby protecting margins. Additionally, the potential $3 billion total addressable market in the data center sector presents a meaningful opportunity for future growth. Overall, McNulty expresses confidence in the long-term outlook for Chemours, particularly in its TSS segment, and reiterates an Outperform rating.
According to TipRanks, McNulty is a 3-star analyst with an average return of 1.2% and a 48.43% success rate. McNulty covers the Basic Materials sector, focusing on stocks such as Air Products and Chemicals, DuPont de Nemours, and Chemours Company.
In another report released on March 26, Mizuho Securities also upgraded the stock to a Buy with a $19.00 price target.