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Venator Materials fell 3.4% to $1.41 a share at 10:38 a.m. ET on Monday after analysts at BMO Capital downgraded the stock to Underperform from Market Perform. The bank said the chemical maker’s significant exposure to the European market will hurt earnings as energy prices and imports from Chinese rivals rise.
BMO reduced its Q3 revenue estimate for Venator to $605 million from $614 million and EPS forecast to $0.02 from $0.05. The bank also cut its price target to $0.60 from $2 a share.
“Barring relief in European energy prices in the coming years, Venator's long-term outlook appears challenged, and as such we see the risk/reward profile tilted towards the negative,” John P. McNulty, analyst at BMO, said in the research note.
Venator this year has fallen 45%, compared with a 19% decline for the S&P 500 Stock Index (SP500).
BMO also lowered its rating Tronox (TROX) to Market Perform from Outperform because of similar pressures on its business.
| BMO Capital's estimate revisions for Venator (NYSE:VNTR), Sept. 19 | |||
| Q3 | New | Old | |
| Revenue (mln) | $605 | $614 | |
| EPS | $0.02 | $0.05 | |
| 2022 | |||
| Revenue (mln) | $2,435 | $2,477 | |
| EPS | $0.11 | $0.23 | |
Seeking Alpha contributor Gold Panda has a Sell rating on Venator (VNTR) on falling prices for titanium dioxide, which is used in industrial and consumer products.