Imperial Capital Sees 50% Upside in Tronox (TROX)

February 21, 2013 1:07 PM EST Send to a Friend
Get Alerts TROX Hot Sheet
Price: $22.66 +1.80%

Rating Summary:
    4 Buy, 2 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 37 | Down: 17 | New: 30
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Imperial Capital is sticking with their Outperform rating and aggressive $28 price target on Tronox (NYSE: TROX) following Q4 results citing high expectations for 2013.

"Our price target of $28 represents a potential gain of about 50% from the closing price on 2/20/13, and is based on a multiple of about 6.2x our 2013 adjusted EBITDA estimate of $629mn, and using our year-end 2013 estimate for capitalization," the analyst said. "Our EV/EBITDA multiple of 6.2x is consistent with the current blended valuations of select comparables Huntsman Corp., Iluka Resources, Kronos Worldwide, and Rio Tinto."

The firm is positive on share repurchases and dividend payments, free cash flow and vertical integration from the acquisition of the mineral sands businesses from Exxaro Resources.

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 $18.67 yesterday.


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