Tronox (TROX -0.1%) is worth $24/share if the company divests all of Cristal’s titanium dioxide assets in the U.S. and its own assets in Botlek, Netherlands, assuming the Cristal deal wins regulatory approval, says J.P. Morgan analyst Jeffrey Zekauskas.
The analyst says TROX would be worth $20 on stand-alone basis, vs. a previous estimate of $16 which did not sufficiently model high free cash flow generation; Zekauskas rated TORX at Overweight with a $22 price target.
Separately, SunTrust analysts say titanium dioxide (TiO2) sector fundamentals remain positive despite TROX’s anti-trust issues regarding the Cristal deal.
Source: Bloomberg First Word
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