Chemours Co (NYSE:CC) shares have surged another 2.5% in the pre-market after Laurence Alexander of Jefferies upgraded his rating on the chemicals producer to ‘Buy’ from ‘Hold’. The analyst also increased his price target to $48 per share, from the previous $35. As reason for the upgrade, Alexander thinks that longer term structural improvements in the titanium dioxide and fluoropolymers market could unlock even more wealth for shareholders. In addition the analyst notes that although shares of Chemours Co (NYSE:CC) have had a rally for the ages over the past year due to litigation relief and cyclical leverage, the stock still sports an around 8% free cash flow yield.
Sentiment in the stock has been strong due to the broader bull market and the news that Chemours Co (NYSE:CC) recently hiked the worldwide price for all its fluoropolymer chemical products by up to 10%. News of the upgrade has improved sentiment even further.
What Does The Smart Money Sentiment Say?
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Smart money sentiment around the chemicals producer has been relatively stable. Of the 742 top funds we track, 29 were long Chemours Co (NYSE:CC) at the end of the fourth quarter, down 2 funds from the previous quarter.
The Bottom Line
Despite soaring 64% year-to-date and over 400% over the last four quarters, Jefferies thinks there is still more upside for Chemours Co (NYSE:CC) ahead.