J.P. Morgan Downgrades Tronox Amid Industry Challenges
J.P. Morgan analyst Jeffrey Zekauskas has revised his outlook for Tronox, citing challenging industry conditions and weak demand. He withdrew his previous $7 price target for December 2026, and downgraded the company's shares to 'Neutral' from 'Overweight'.
Zekauskas, who has represented J.P. Morgan as an analyst for Tronox, now expects the company's demand to decrease sequentially in Q3. This is due to intense competition and weak end markets. The titanium dioxide industry, of which Tronox is a part, has faced tougher conditions recently. Weak housing and construction markets in the U.S. and Europe have contributed to this. Additionally, delays and potential reversals in tariff implementations, along with increased competition, have led to lower volumes and prices in the short term.
Tronox (NYSE:TROX) shares reacted to these developments, decreasing by 0.3% in volatile trading on Friday.
J.P. Morgan's downgrade of Tronox reflects the near-term challenges facing the titanium dioxide industry. Despite the recent share decrease, Tronox continues to trade on the New York Stock Exchange.
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