Tronox price target lowered to $8 from $12 at Morgan Stanley

Morgan Stanley analyst Vincent Andrews lowered the firm’s price target on Tronox (TROX) to $8 from $12 and keeps an Equal Weight rating on the shares. Following Q1 results, the firm notes that its EBITDA forecast is now about 10% lower than when it last updated its price target and it is now assuming about 7.5-times multiple, versus about a 8.5-times multiple previously. The firm continues to see more downside risk than upside risk as it does not believe anti-dumping duties on China are going to materially improve the Ti02 market and thinks volume trends in general this year will come in softer than Tronox expects, noting that its estimates are at the low end of the company’s guidance range.