Analyst John McNulty of BMO Capital maintained a Hold rating on Ingevity (NGVT – Research Report), with a price target of $62.00.
John McNulty’s rating is based on several considerations surrounding Ingevity’s current position and future prospects. The company is beginning to benefit from efforts to overcome pressures from its CTO platform. Despite muted end-market volumes, the high-value PM business is experiencing growth, and the APT business is anticipated to improve due to self-help measures. Additionally, the PC segment is expected to see a substantial rise in 2025, which should enhance free cash flow.
While these developments are positive, McNulty maintains a Hold rating as the company awaits the appointment of a permanent CEO and assesses potential impacts of auto tariffs, which could significantly affect earnings. The risk/reward profile has improved, but uncertainties remain, particularly concerning the timing of the AFA product ramp-up. Although there are long-term catalysts like cash flow deployment and new emission regulations, the overall projection is that the stock will perform in line with the market.
NGVT’s price has also changed moderately for the past six months – from $36.770 to $48.260, which is a 31.25% increase.