BMO Capital analyst John McNulty has raised the firm's price target on Chemours (CC) to $20 from $18, keeping an Outperform rating on the shares. This adjustment follows Chemours' sale of its Taiwan TiO2 site for $360 million.
In a research note to investors, McNulty described the proceeds as a "sizable windfall" and a "meaningful positive" for the company. BMO expects the funds to be used for debt reduction, which would provide a "liquidity cushion" for future PFAS settlements.
The firm stated that the sale should help investors "get comfortable" that Chemours has sufficient cash to fund future growth opportunities. The announcement was made shortly after the transaction was completed.