Cabot sees 8%-12% adjusted EPS CAGR over next three years
Dec. 03, 2021 2:27 PM ETCabot Corporation (CBT)By: Carl Surran, SA News Editor
- 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.