Analyst John McNulty of BMO Capital maintained a Buy rating on TRONOX (TROX – Research Report), with a price target of $19.00.
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John McNulty has given his Buy rating due to a combination of factors that suggest a positive outlook for TRONOX. Despite a slightly disappointing EBITDA guidance for 2025, the company demonstrated a solid performance in the fourth quarter, with volumes in TiO2 and zircon exceeding expectations. Additionally, TRONOX’s management announced a significant cost-cutting program projected to enhance earnings in the long term.
Furthermore, the company’s position in the market appears favorable, as it stands to benefit from the beginning of the TiO2 cycle, which is expected to boost revenue. The anticipated increase in asset utilization is likely to have a beneficial impact on earnings moving into 2024. Moreover, the implementation of EU tariffs could improve pricing dynamics in Europe, potentially providing an advantageous position for TRONOX in the global market.
According to TipRanks, McNulty is a 3-star analyst with an average return of 2.3% and a 51.15% success rate. McNulty covers the Basic Materials sector, focusing on stocks such as Air Products and Chemicals, Ashland, and Ecolab.