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Investing.com - BMO Capital raised its price target on Ingevity Corp (NYSE:NGVT) to $68.00 from $62.00 on Thursday, while maintaining an Outperform rating on the specialty chemicals company. The stock, which has gained over 54% in the past year and is trading near its 52-week high of $58.73, has shown strong momentum with a 42% rise year-to-date.
The price target increase follows Ingevity’s announcement of the sale of its CTO Refinery and most of its InSpec business within the Performance Chemicals platform.
BMO Capital noted that the transaction was completed at what it described as a "solid high-teens multiple," which the firm believes will reduce earnings volatility and improve the margin profile of Ingevity’s business.
The research firm expects Ingevity CEO Li to communicate his vision for the company, including potential additional portfolio optimization actions, long-term growth strategy, and financial priorities in late 2025 or early 2026.
BMO Capital views these upcoming strategic communications as potential catalysts for the stock, supporting its decision to maintain an Outperform rating on Ingevity shares.
In other recent news, Ingevity Corporation reported its second-quarter earnings for 2025, with earnings per share of $1.39, surpassing the forecasted $1.16. However, the company’s revenue fell short of expectations, coming in at $365 million compared to the forecasted $378.7 million. Ingevity has also entered into a definitive agreement to sell its North Charleston crude tall oil refinery assets and most of its Performance Chemicals Industrial Specialties product line to Mainstream Pine Products for approximately $110 million in cash. This transaction, expected to close by early 2026, could include additional contingent payments of up to $19 million. The divested assets are projected to generate approximately $130 million in revenue for 2025. Additionally, BMO Capital raised its price target for Ingevity to $62 from $56, maintaining an Outperform rating. The firm highlighted Ingevity’s earnings inflection point as a reason for potential significant upside. These recent developments indicate a period of strategic shifts and financial performance for Ingevity.
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