Vincent Andrews, an analyst from Morgan Stanley, maintained the Hold rating on TRONOX. The associated price target remains the same with $4.00.
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Vincent Andrews has given his Hold rating due to a combination of factors affecting Tronox’s recent performance and future outlook. The company’s third-quarter EBITDA fell short of market expectations, and the guidance for the fourth quarter suggests flat sales and EBITDA, which also do not meet consensus estimates. This underperformance is attributed to weaker-than-expected demand in end markets, increased competitive pressures, and inventory liquidation by a competitor.
Despite these challenges, Tronox anticipates positive free cash flow in the fourth quarter and into 2026, which provides some optimism. However, the company’s high net debt and significant leverage remain concerns, as does the pressure on TiO2 and zircon volumes. These mixed signals contribute to the Hold rating, as investors are advised to consider both the potential for future cash flow improvements and the current financial constraints.
According to TipRanks, Andrews is a 3-star analyst with an average return of 1.7% and a 55.45% success rate. Andrews covers the Basic Materials sector, focusing on stocks such as Sherwin-Williams Company, Ecolab, and Corteva.
In another report released on November 4, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $3.00 price target.