Chemours pre-announcement has ‘more positives than negatives,’ says BMO Capital

BMO Capital analyst John McNulty notes that Chemours (CC) negatively pre-announced Q2 EBITDA is expected to come in at $215M-$225M, versus guidance of $232M-$241M and consensus at $236M despite sales expected at the high end of the original range. Despite the negative pre-announcement of Q2 results, the “long-lasting” positives should largely outweigh the short-term, one-off negatives, says the analyst. While shares “may remain in the penalty box for the ops issue,” the notable improvement in the growth businesses is more important for Chemours looking forward, adds the analyst, who has an Outperform rating and $17 price target on the stock.