Orion Engineered initiated with an Outperform at Credit Suisse

Credit Suisse analyst John Roberts initiated coverage of Orion Engineered with an Outperform rating and $31 price target. The firm notes Orion Engineered Carbons is a pure-play carbon black producer. About 60% of its gross profit is from rubber blacks and 40% is specialty blacks. Orion Engineered is emerging from a large spending program on mandated environmental systems, Credit Suisse points out. The firm expects enterprise free cash flow as a percent of EBITDA to increase from 23% in 2022 to 36% in 2025.