Analyst Finds It Difficult To Make Numeric Assumptions For Chemours: Here's Why

BMO Capital Markets analyst John P. McNulty downgraded The Chemours Company CC to Underperform from Outperform at a lowered price target of $19 (from $45).

The analyst re-rated the stock after the company disclosed management changes and further delay in filing its 10-K.

This week, the company said it is delaying its fourth quarter results and 10-K, which was previously expected on February 28 and February 29, 2024, respectively. 

Related: Chemours Stock Tumbles As Company Reveals Management Shakeup And Financial Struggles

The company expects FY23 net sales of about $6.0 billion (vs. $6.8 billion a year ago), compared to the consensus of $6.02 billion.

Chemours also announced that they have put CEO Mark Newman, CFO Jonathan Lock, and VP & Controller Camela Wisel on administrative leave pending the completion of an internal review. 

The analyst says he finds it difficult and high risk to make numeric assumptions for earnings for the company at this juncture.

Nevertheless, the analyst sees the core businesses for the company as being in the early stages of recovery with TiO2 trends turning positive, TSS likely nearing the end of the HFC destock and strong HFO demand, and APM likely nearing the bottom of its economic downturn. 

McNulty expects EPS estimates of $2.92 (vs. consensus: $3.01) in 2023, $3.50 (vs. $3.69 estimate) in 2024, and $5.43 (vs. $4.90 consensus) in 2025.

Price Action: CC shares are trading higher by 2.75% at $20.21 on the last check Friday.