Tronox downgraded to Neutral from Buy at UBS

UBS analyst Joshua Spector downgraded Tronox (TROX) to Neutral from Buy with a price target of $3.60, down from $8. With the company’s volumes and earnings remaining “challenged” in the near term, UBS sees a recovery for Tronox further out than previously assumed. In addition, the company’s leverage remains more challenging in a weaker demand environment, the analyst tells investors in a research note. UBS thinks a much stronger demand environment will be needed for the company’s free cash flow or inventory to improve meaningfully despite the 60% dividend cut.