UPDATE: UBS Upgrades TRONOX (TROX) to Buy

UBS analyst John Roberts upgraded TRONOX (NYSE: TROX) from Sell to Buy with a price target of $32.00 (from $22.00).

The analyst comments "We abandon our more negative view on TROX and the TiO2 price direction for a more constructive outlook. We raise our 2022-23 EBITDA est's 8-11% (now +5% vs cons) and increase our Price Target to $32 (~45% upside). We had been concerned that China TiO2 pricing would weaken, impacting the upward trajectory in western markets, however this has not played out. We now expect TiO2 prices to continue to rise in the medium term, in part due to continued tight supply/demand, but also due to a higher cost base for the average TiO2 producer. Tronox back integration will allow margins to expand, while non-integrated producers raise prices just to maintain profitability. And outside of TiO2 industry fundamentals, we see a number of company specific initiatives (NewTRON, Jazan) which could push earnings higher. "

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 $22.25 yesterday.

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