Cabot sees 8%-12% adjusted EPS CAGR over next three years

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• Cabot Corp. (CBT +4.2%) rallies for a second straight session following an upbeat investor day presentation that included a new target for compound annual growth rate for adjusted EPS of 8%-12% for 2022-24.
• Cabot says it expects to generate more than $1B in total discretionary cash flow over the next three years to support strategic growth initiatives, with a commitment to "maintaining an investment grade credit rating and returning capital to shareholders."
• The company says it plans to invest in high growth areas such as Battery Materials and Inkjet with new capacity to meet significant growth in customer demand.
• Presentation slides
• Cabot shares are "well-placed relative to other material stocks and also appears to be cheap relative to its average forward multiple," The Alpha Sieve writes in a bullish analysis posted recently on Seeking Alpha.