Breaking Down UBS Upgrade of Chemours' Stock

Shares of the chemical company, Chemours, experienced an increase after being upgraded from a "neutral" to a "buy" rating by UBS. Analysts asserted that the negative sentiment surrounding the stocks was unwarranted and placed the new price target at $30, up from $28. The analysts pinned their confidence on Chemours' potential to surpass expectations given the normal earnings levels for titanium dioxide (TiO2), a key colorant, and the anticipated favourable changes in refrigerants demand/pricing going up to 2025. In their opinion, Chemours' downtrend in TiO2 volume can be primarily attributed to single incident glitches this year, which they expect to resolve, thus competing favourably with rivals in the coming year. Accordingly, they predicted an improvement in the profitability of TiO2 as the year progresses. They also point attention to the regulatory efforts to mitigate global warming that are predicted to boost demand for low-emission coolants. This, they argue, will significantly benefit Chemours' next-gen hydrofluoroolefins (HFO) refrigerants. Despite witnesssing growth today, Chemours' shares have experienced over 25% depreciation in value over the course of 2024.