Chemours slides to a six-month low after brokerages slash PT
23/09/2022 15:54
(Updates)
** Shares of chemical producer Chemours Co CC.N fell 5% to
$25.33, lowest since March 2022
** Shares extended losses for a sixth straight day, wiping
out a quarter, or $1.32 billion, in market cap
** Brokerages BMO Capital Markets and Jefferies cut PTs as
energy crises in Europe impair demand for refrigerant titanium
oxide (TiO2)
** Brokerage Jefferies cuts PT to $30 from $40 and lowers
2022 EBITDA outlook citing supply chain costs, foreign exchange
headwinds and a weakening demand in Europe and China
** The severity of the weakness was surprising, said
brokerage BMO Capital Markets, who lowered PT to $46 from $55
but reiterated an "outperform" rating
** Technical indicators also suggest a short-term weakness
with the stock falling below 30 on the relative strength index,
while it's 50-day moving average fell below 200-day, creating a
'death cross'
** The chemicals company cut its full-year forecast for
adjusted earnings citing low demand and high input costs on
Wednesday, joining peers Huntsman Corp HUN.N and Eastman
Chemical Co EMN.N urn:newsml:reuters.com:*:nL4N30S2GM
** Brokerages Bank of America Global Research and RBC also
cut PT to $36 and $35 on Thursday from $44 and $48, respectively
** 6 of 13 brokerages rate the stock "buy" or higher, 7 rate
it "hold"; median PT is $37
** Including session's move, stock has fallen 24% YTD
(Reporting by Anirban Chakroborti and Mehnaz Yasmin in
Bengaluru)
((Anirban.Chakroborti@thomsonreuters.com;))