Analyst Finds It Difficult To Make Numeric Assumptions For Chemours: Here's Why
Portfolio Pulse from Lekha Gupta
BMO Capital Markets analyst John P. McNulty downgraded The Chemours Company (NYSE:CC) to Underperform from Outperform with a new price target of $19, down from $45, citing management changes, delays in filing its 10-K, and financial struggles. Despite these challenges, McNulty notes early signs of recovery in core businesses but finds it high risk to make numeric earnings assumptions currently. Chemours expects FY23 net sales of about $6.0 billion, down from $6.8 billion the previous year.
March 01, 2024 | 6:54 pm
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Chemours downgraded to Underperform from Outperform by BMO Capital Markets with a lowered price target of $19 due to management changes, filing delays, and financial struggles. Early recovery signs in core businesses noted.
The downgrade by a major analyst due to management changes, filing delays, and financial struggles directly impacts investor sentiment and could lead to a decrease in stock price in the short term. However, the mention of early recovery signs in core businesses provides a slightly mitigating factor, though not enough to offset the negative impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100