In a report released yesterday, John McNulty from BMO Capital maintained a Buy rating on Ingevity (NGVT – Research Report), with a price target of $50.00.
John McNulty’s rating is based on Ingevity’s strong performance in the first quarter of 2025, where the company exceeded expectations in several segments, demonstrating resilience and adaptability. Despite challenges like the trade war and potential impacts on the auto industry, Ingevity has shown a positive trajectory with a projected EBITDA growth of at least 5% for the full year.
The company’s strategic initiatives, including a new CEO and a strategic review of its Performance Chemicals business, are expected to unlock further value. Additionally, Ingevity’s significant free cash flow yield and an undervalued stock position suggest potential for upward movement. These factors, combined with favorable long-term catalysts such as new emission regulations, contribute to a positive risk/reward outlook, justifying the Buy rating.
McNulty covers the Basic Materials sector, focusing on stocks such as DuPont de Nemours, Air Products and Chemicals, and Ingevity. According to TipRanks, McNulty has an average return of 1.0% and a 49.23% success rate on recommended stocks.