Mizuho Downgrades Cabot Corp. (CBT) to Neutral

Mizuho analyst John Roberts downgraded Cabot Corp. (NYSE: CBT) from Outperform to Neutral with a price target of $75.00 (from $80.00).

The analyst commented, "We recently reviewed CBT’s DecQ25 results (link), which included EPS guide for the remaining nine months of FYSep26 that was 8% below our prior estimate. Pure-play carbon black peer Orion Carbons is rated Underperform. Our earlier thesis was that Cabot’s more regionally diversified carbon black business, and more specialty non-carbon black chemicals, could allow Cabot to meet estimates. With no recovery in sight for tire & rubber product demand for carbon black, the stock up 36% from its November low, and NTM P/E 10% above 5-year relative to S&P SMID SpecialtyChem average, we’re stepping to the sidelines.

We lower our 2026/2027 EPS to $6.30/$6.95 from $6.65/$7.60, below Bloomberg consensus of $6.46/$7.15, and our NTM+1 EPS down to $7.18 from $7.40. Our reduced $75 PT is based on NTM P/E of unchanged ~10.5x, which is ~0.67 relative to the S&P SMIDCap SpecialtyChem Index, & compares to a 5-year median of ~0.59."

For an analyst ratings summary and ratings history on Cabot Corp. click here. For more ratings news on Cabot Corp. click here.

Shares of Cabot Corp. closed at $71.29 yesterday.

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