Ingevity In For A Bumpy Ride In The CTO Market, Analyst Downgrades Rating
Portfolio Pulse from Lekha Gupta
BMO Capital Market analyst John P. McNulty has downgraded Ingevity Corp (NYSE:NGVT) to Market Perform from Outperform, lowering the price target to $60 from $71. McNulty anticipates worsening headwinds in the CTO market over the next 12-18 months, particularly due to higher demand from the European biofuels market and supply constraints. These factors are expected to increase costs by around $200 million in NGVT's Performance Chemicals segment in 2023. Weak demand for rosin in Asia/Europe has also decreased NGVT's ability to push prices and produce TOFA/derivative products.
August 07, 2023 | 5:45 pm
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Ingevity Corp has been downgraded by BMO Capital Market analyst due to expected headwinds in the CTO market, which will increase costs and decrease the company's ability to push prices.
The downgrade by BMO Capital Market analyst is based on the expected worsening conditions in the CTO market, which will increase costs for Ingevity Corp and decrease its ability to push prices. This is likely to negatively impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100