Moody’s upgrades Agnico Eagle’s rating to A3 on debt reduction
Investing.com - Mizuho (NYSE:MFG) lowered its price target on Tronox (NYSE:TROX) to $6.00 from $7.00 on Monday, while maintaining a Neutral rating on the stock. The company, currently trading at $5.64, has seen its shares decline over 61% in the past year, though InvestingPro data shows an 8.5% recovery in the past week.
The price target reduction reflects sustained weakness in the global titanium dioxide (TiO2) industry, which has prompted the firm to revise its earnings forecasts downward for the chemical manufacturer. Despite current challenges, the company maintains an attractive 8.9% dividend yield and has sustained dividend payments for 14 consecutive years, according to InvestingPro analysis.
Mizuho reduced its EBITDA estimates for Tronox to $502 million for 2025, $607 million for 2026, and $682 million for 2027, down from previous projections of $553 million, $627 million, and $708 million respectively.
The new $6 price target is based on approximately 6x next-twelve-months-plus-one-quarter EBITDA of $628 million, covering the period through March 2027, down from the previous estimate of $649 million.
Mizuho maintained its multiple of approximately 6x in the valuation, keeping its Neutral stance on Tronox stock despite the lowered earnings outlook.
In other recent news, Tronox Holdings PLC reported its first-quarter 2025 earnings, revealing a net loss of $111 million and revenue of $738 million, which fell short of the forecasted $751.59 million. The company missed its earnings per share (EPS) estimate, reporting -$0.15 against the expected $0.02. Meanwhile, BMO Capital Markets downgraded Tronox’s stock rating from Outperform to Market Perform, reducing the price target from $13.00 to $7.00, citing high-cost inventories and a less favorable outlook for the second quarter. The firm noted that Tronox would need a significant earnings increase in the second half of the year to meet its projections. On a more optimistic note, JPMorgan upgraded Tronox from Neutral to Overweight, raising the price target to $7.00 based on potential volume opportunities and a more favorable macroeconomic outlook. The analyst from JPMorgan highlighted expectations for titanium dioxide (TiO2) prices to rise in 2025. These developments reflect the mixed sentiment among analysts regarding Tronox’s financial performance and future prospects.
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