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Tronox Financial Outlook: Hold Rating Amid EPS and EBITDA Downgrades Due to Market Challenges

Tronox Financial Outlook: Hold Rating Amid EPS and EBITDA Downgrades Due to Market Challenges

Analyst Vincent Andrews from Morgan Stanley maintained a Hold rating on TRONOX (TROXResearch Report) and keeping the price target at $8.00.

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Vincent Andrews has given his Hold rating due to a combination of factors affecting Tronox’s financial outlook. The company’s earnings per share (EPS) and EBITDA estimates have been revised downward for the upcoming quarters and years, indicating a challenging market environment. Specifically, the EPS for the second quarter of 2025 has been adjusted from a positive $0.01 to a negative $0.02, reflecting a deviation from consensus expectations.
Additionally, the adjustments in EBITDA forecasts for 2025 through 2027 suggest a less favorable performance compared to market consensus, with figures being revised to lower levels than previously anticipated. These revisions are primarily driven by weaker-than-expected demand for titanium dioxide (TiO2) in a competitive market, alongside adjustments in TiO2 and zircon pricing, as well as updated feedstock costs and foreign exchange rates. These factors collectively contribute to a cautious outlook, justifying the Hold rating.

Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TROX in relation to earlier this year.

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