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Chemours on the Street: Recommendations and Target Prices

Peter Neil - Author
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Jun. 27 2017, Updated 9:08 a.m. ET

Analysts’ recommendations

On June 22, 2017, Chemours stock was being tracked actively by eight analysts from different brokerage firms. Among these eight, 75% have issued a “buy” recommendation, while 12.5% of the analysts have issued a “hold” recommendation. The remaining 12.5% have given the stock a “sell” recommendation.

The analysts’ consensus on Chemours stock over the next 12 months indicates a target price of $47.14, as compared to its closing price of $36.81 on June 23, 2017.

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Why are so many analysts recommending a “buy”?

Chemours posted strong results in 1Q17 that beat the analysts’ estimate. Now, CC has revised its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) to be in the range of $1.15 billion–1.25 billion. Chemours believes that its continued growth, driven by demand for titanium dioxide and Opteon, has caused the majority of analysts to recommend a “buy” for its stock.

Target prices by individual brokerage firms

Below are the latest analyst recommendations and price targets for Chemours:

  • J.P. Morgan (JPM) rated Chemours as “overweight,” with a target price of $50, which implies a 12-month potential return of 35.8% based on its closing price of $36.8 on June 22, 2017.
  • Barclays (BCS) provided Chemours with a target price of $50, which implies a 12-month return of  35.8%, based on its closing price of $36.81 on June 22.
  • Goldman Sachs (GS) rated Chemours as a “buy,” with a target price of $42, which implies a 12-month potential return of 14.10% based on its closing price of $36.81 on June 22.

Investors can indirectly invest in Chemours by investing in the iShares US Basic Materials ETF (IYM), which had 1.14% in Chemours on June 22, 2017.

In the next part and final part of this series, we’ll discuss Chemours’ latest valuations.

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