Ingevity price target lowered to $45 from $48 at BMO Capital

BMO Capital analyst John McNulty lowered the firm’s price target on Ingevity to $45 from $48 and keeps a Market Perform rating on the shares. The firm is adjusting its model after the company reached an agreement with CTO, or crude tall oil, supplier Georgia-Pacific for $100M to end its long-term supply agreement, which follows Ingevity ending its supply agreement with its other long-term supplier WestRock on June 3, though it also sees this as a positive step in removing the CTO impact to ongoing free cash flows, the analyst tells investors in a research note.