Loop Capital downgrades Ingevity on challenging developments

Loop Capital analyst Chris Kapsch downgraded Ingevity to Hold from Buy with a price target of $53, down from $62. The surge in energy prices could underpin another upward move in feedstock costs, representing a sustained headwind for the company’s Pine Chemicals business’ margins, the analyst tells investors in a research note. In addition, the ongoing United Auto Workers strike could create uncertainty regarding Ingevity’s near-term results while the rise in Treasury yields, and thus interest rates, may represent a problem for stocks with relatively higher leverage multiples, says the firm. Loop says these fundamental developments may adversely affect Ingevity’s results and/or investor sentiment near term.