In a report released today, Laurence Alexander from Jefferies maintained a Buy rating on Cabot (CBT – Research Report), with a price target of $127.00.
Laurence Alexander has given his Buy rating due to a combination of factors influencing Cabot’s market position. The steady demand for replacement tires is expected to provide resilience against regional headwinds from increased tire imports into the US. While these imports pose a challenge, the growing sales in Asia are anticipated to offset this impact, supporting Cabot’s carbon black volumes.
Additionally, the completion of 2025 rubber black contract negotiations in the US and Europe suggests that prices will likely outpace costs, albeit with a modest benefit to EBITDA. Despite the sluggish demand in performance chemicals, particularly in the auto and construction sectors, the electronics demand remains stable. Although tariff uncertainties and low consumer confidence present challenges, these factors collectively support a Buy rating for Cabot.
In another report released on March 17, Mizuho Securities also maintained a Buy rating on the stock with a $100.00 price target.