Chemours falls as RBC downgrades stock on persistent TiO2 weakness

Investing.com -- Chemours Co (NYSE: CC) shares slid 2.5% in premarket trading Tuesday after RBC Capital downgraded the chemical producer to Sector Perform from Outperform, citing persistent operational headwinds and reduced growth expectations. The firm also sharply reduced its price target on the stock to $14 from $22, signaling limited near-term upside as macro pressures weigh on key operating divisions.

Analyst Arun Viswanathan highlighted ongoing demand weakness in titanium dioxide (TiO2) within the construction and coatings sectors, which continues to offset the benefits of recent cost-reduction initiatives. Meanwhile, potential delays in high-margin Thermal & Specialized Solutions (TSS) projects could extend segment headwinds through year-end, further constraining earnings visibility.

Against that backdrop, RBC lowered its third-quarter EBITDA estimate to $185 million and trimmed its full-year EBITDA projections for FY26 and FY27 to $760 million and $900 million, respectively. The revised figures reflect concerns that further macroeconomic deterioration could trigger additional downside risks to forward financial targets.

Although recent PFAS litigation settlements have meaningfully de-risked the company's long-term legal exposure, valuation expansion appears unlikely in the near term, the analyst posited. The firm adjusted its target multiple to 6.0x FY27 EBITDA, down from 7.0x, concluding that the stock now looks largely fully valued at current trading levels.

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