Mizuho cut Chemours (CC) price target to $25 from $30, citing oil's impact on natural gas cost advantage. BMO reiterated Buy at $26. Stock trades 11% below lowest Wall Street target.
Alpha Score of 68 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
The chemical company Chemours (CC) is facing a narrowing cost advantage as lower oil prices compress the gap between natural gas and oil-based production, analysts said. Mizuho Securities cut its price target on the specialty chemicals maker to $25 from $30 on July 1, while keeping an Outperform rating. The move came as part of the firm's broader second-quarter earnings preview, in which it lowered targets for most basic chemical companies.
When oil prices drop, rival producers using oil-based processes see their costs fall. That reduces the cost advantage Chemours gets from its U.S. plants, which rely on natural gas for power and feedstock. Mizuho cited the reduced expected cost benefit from natural gas as a key reason for the revision.
BMO Capital Markets took a more bullish stance a few days later, on July 6, reiterating a Buy rating with a $26 price target. That target is close to the median Wall Street estimate of $25, based on 11 analysts covering the stock. The stock recently traded at about $18.90, roughly 11% below the lowest Wall Street target of $21, according to the same analysts.
Mizuho also noted that continued investment in advanced computing infrastructure should support demand for technology materials over the longer term. That could provide a buffer for Chemours' specialty chemicals business, which sits within its Advanced Performance Materials segment. The company also runs Titanium Technologies and Thermal & Specialized Solutions.
The next key data point is the company's second-quarter earnings report, due later this month. That report will show whether the margin pressure from oil has already appeared in the numbers. The stock closed at $18.90 on July 8, according to data from the New York Stock Exchange.
AlphaScala's data shows CC as unscored, with no available Alpha Score, in the Basic Materials sector. The stock page tracks the company's performance and analyst coverage. The broader crude oil profile provides context for the energy input costs that shape Chemours' competitive position.
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