Ingevity (NGVT) has disclosed a new risk, in the Corporate Activity and Growth category.
Ingevity’s strategic overhaul of its Performance Chemicals segment, notably the closure of the DeRidder plant, signals a significant shift away from certain markets, which may lead to a temporary dip in net sales, accounting for nearly half of the segment’s historical revenue. This transition is set to incur substantial costs, totaling about $280 million, with the majority comprising non-cash asset charges. The financial repercussions of these decisions could strain Ingevity’s financial health and operational results during the restructuring period.
The average NGVT stock price target is $62.20, implying 16.13% upside potential.
To learn more about Ingevity’s risk factors, click here.
