Baird Cuts Price Target on Chemtura (CHMT) to $33 Following a Weak 4Q

Baird maintained an Outperform rating on Chemtura Corporation (NYSE: CHMT), and cut the price target to $33.00 (from $35.00), following the company's 4Q earnings report. CHMT reported net sales of $399M missing consensus estimates of $420.1M. Non-GAAP EPS was $0.44, also missing consensus estimates at $0.41.

Analyst Ben Kallo commented, "CHMT reaffirmed its 2016 EBITDA growth target, and believes it will benefit from continued strength in bromine pricing throughout the year. Capacity additions for HVPAO and higher bromine volumes should contribute to EBITDA growth, and will help overcome lower expected clear brine fluid demand. Additionally, management continues to evaluate potential mergers, a business sale, or a transformative acquisition, which could be an intermediate-term catalyst. We believe shares remain undervalued at current levels."

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

Shares of Chemtura Corporation closed at $24.47 yesterday.

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