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On Thursday, Jefferies analyst Laurence Alexander revised the price target for Chemours (NYSE:CC) shares, reducing it from $20.00 to $11.50, but retained a Hold rating on the stock. The adjustment follows Chemours’ first-quarter earnings per share (EPS) of $0.13, which fell short of the consensus by $0.07 and was $0.21 below Jefferies’ own estimate. According to InvestingPro data, the stock has declined over 58% in the past year, though analysts maintain a consensus target range of $13-22, suggesting potential upside. InvestingPro analysis indicates the stock is currently undervalued based on its Fair Value model.
Alexander noted that supply chain disruptions are currently affecting the company, posing near-term challenges. However, he mentioned that a significant recovery for Chemours might depend on more supportive policies. Despite the lower than expected Q2 outlook, the analyst acknowledged that there are positive aspects, such as the benefits coming from titanium dioxide (TiO2) and cost-saving measures that could balance out the broader macroeconomic weakness. InvestingPro data reveals the company maintains a healthy current ratio of 1.68 and offers a substantial 9.17% dividend yield, though it operates with significant debt levels. For deeper insights into Chemours’ financial health and growth prospects, subscribers can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The long-term projection for Chemours’ EBITDA for the year 2025 remains between $825 million and $975 million, aligning with the consensus of $877 million. Alexander also highlighted the company’s strategic focus on the data center liquid cooling market, which could be a key driver for Chemours in the future.
The analyst’s remarks come after Chemours reported earnings that did not meet market expectations, prompting a reassessment of the stock’s value. The company’s performance and future outlook, as described by Alexander, reflect both the headwinds faced in the current economic environment and the potential areas of growth on the horizon.
In other recent news, Chemours Co announced its Q1 2025 financial results, revealing that earnings per share (EPS) were $0.13, which missed the forecast of $0.23. The company reported revenue of $1.37 billion, slightly surpassing expectations of $1.36 billion. Despite the revenue beat, the earnings miss led to a negative market reaction. The company also reduced its dividend by 65% to enhance balance sheet flexibility. Chemours is optimistic about its strategic initiatives, including a partnership with Naveen Fluorine to produce Opteon two-phase immersion cooling fluid. The company is targeting improvements in its Titanium Technologies and Thermal & Specialized Solutions segments. Analyst discussions highlighted the company’s focus on cost management and strategic growth projects. Chemours has set an adjusted EBITDA guidance range of $825 million to $950 million for the remainder of 2025.
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