Chemours (CC) reiterating its 2026 guidance may be viewed as weaker than peers, and investors may have been looking for a stronger signal from management of an H2 boost, RBC Capital Markets said in a note emailed Monday.
Chemours secured a long-term chlorine supply contract with Olin (OLN) starting in 2028, aimed at strengthening its competitive position, the firm said. By that time, the PCC plant is expected to come online and deliver solid cost benefits for the company, according to the note.
While the company should benefit from the Middle East conflict-driven sulfur cost inflation impacting sulfate-based TiO2 competitors, price has yet to boost earnings, which should start in H2, the brokerage added.
RBC kept an outperform rating on Chemours and raised the price target to $29 from $26.
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