UBS Upgrades TRONOX (TROX) to Buy

UBS analyst Joshua Spector upgraded TRONOX (NYSE: TROX) from Neutral to Buy with a price target of $19.00 (from $17.00).

The analyst comments: "Our updated 2025/26 EBITDA estimates are 9%/8% above consensus. We believe TROX EBITDA over the last 2 years has been hindered by lower op rates and some one time issues as production restarts. With TROX op rates now back above 80%, this represents a $55M tailwind into 2025. TiO2 is a key ingredient into paints/coatings, and TROX vols still sit ~10% below 2021 levels vs paint vols -5%. Interest rate cuts and potential China stimulus could be a catalyst for eventual restocking, while duties in Europe add upward bias to pricing. Together these result in a ~32% Y/Y increase in EBITDA, pushing TROX EBITDA back above $800M. Combined with a decrease in capex, this results in FCF of > $300M, which we don't believe is priced in (trading at ~13% cash yld)."

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

Shares of TRONOX closed at $13.65 yesterday.

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