The Chemours Company (CC) has announced that it is selling its Mining Solutions business to Czech cyanide producer Draslovka Holding for $520 million in cash. The divestiture is expected to complete in the fourth quarter of 2021.
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As a global chemistry company, Chemours holds strong market positions in the sectors of Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials and Chemical Solutions. (See Chemours stock chart on TipRanks)
The President and CEO of Chemours, Mark Newman, said, “Today’s announcement of the Mining Solutions divestiture furthers our strategy of focusing on our three principal businesses in order to drive long-term shareholder value. Leveraging differentiated strategies, we feel confident that our businesses are well positioned to deliver growth and higher quality earnings through economic cycles”.
Last month, BMO Capital analyst John McNulty reiterated a Buy rating on the stock, while increasing the price target to $48 from $42 (upside potential of 48.7%).
McNulty believes that the company seems to be positioned well for growth, given the strength of its Advanced Performance Materials business. The analyst added that product performance, margin improvement and GDP growth are expected to boost Chemours’ bottom line for the next 4-5 years.
Consensus among analysts is a Moderate Buy based on 7 Buys and 5 Holds. The average Chemours price target of $39.92 implies 23.7% upside potential to current levels.
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