Tronox downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Jeffrey Zekauskas downgraded Tronox to Neutral from Overweight with a price target of $11, down from $16. The analyst reduced the firm’s EBITDA forecast for Tronox for 2024 from about $700M to $600M to reflect lower titanium dioxide price expectations. The firm thinks a recovery in titanium dioxide prices and volumes is likely to be pushed off until at least the middle of 2024 due to capacity additions in China and weak demand conditions globally. It thinks there is risk in titanium dioxide prices heading into 2024. There are better risk/reward opportunities in the coming year in other materials equities at this time, says JPMorgan.