Tronox initiated with a Neutral at Mizuho

Mizuho initiated coverage of Tronox with a Neutral rating and $22 price target. The analyst cites TiO2 overcapacity concerns and inconsistency around economic growth for the rating. Global supply demand doesn’t appear to be tightening sufficiently in spite of some modest rationalization by outside of China producers, the analyst tells investors in a research note. The firm says Tronox’s valuation looks high relative to its below-trend near-term earnings, “which is not uncommon near cycle bottoms.”