Tronox downgraded to Neutral from Buy at UBS

UBS downgraded Tronox to Neutral from Buy with a price target of $15, down from $17. The firm says that while Tronox’s earnings are at a trough level, it has less confidence in the pace of improvement over the next 12 months. The company’s strength has been its back integration to TiO2 ore/mineral sands, but this is a drag while utilization rates are less than 80%, the analyst tells investors in a research note. With a lack of clarity into a recovery in China property markets in 2024 and increasing China TiO2 supply, there could be further increased exports/pricing risk, contends UBS.