We came across a long thesis on Chemours Company (NYSE:CC) on ValueInvestorsClub by Glory_Warriors. In this article we will summarize the bulls’ thesis on CC. The company’s shares were trading at $18.69 when this thesis was published, vs. closing price of $16.90 on Dec 31st.
Chemours Company (NYSE:CC) is a global provider of chemicals, delivering customized solutions with a wide range of industrial and specialty chemicals products for various markets. The company was spun out of DuPont in 2015 and operates 3 segments: Thermal & Specialized Solutions – this segment produces refrigerants and foam blowing agents; Titanium Technologies – produces titanium dioxide (TiO₂), a white pigment used in paintings, coatings, plastics, cosmetics, etc.; Advanced Performance Materials – this segment produces fluorine-chemistry based polymers, coatings, resins and other materials that are used in electronics, communications, transportation, industrial and consumer end markets.
The investment thesis is centered around the argument that the Thermal & Specialized Solutions segment is poised to thrive as government regulations stimulate the transition from HFC-type refrigerants to the next-generation HFO refrigerants, which have significantly lower global warming potential. With Chemours Company (NYSE:CC) and Honeywell controlling a patented duopoly on HFO technology, the demand for these refrigerants is expected to rise despite recent market challenges, positioning the company to benefit from regulatory-driven tailwinds in 2025 and beyond. Furthermore, the author believes that Chemours Company (NYSE:CC) is well-positioned to become a leader in the emerging field of immersion cooling technology for data centers, by developing a fluid to be used in 2 Phase Immersion Cooling (2-PIC), which offers unparalleled cooling efficiency and significant reductions in the usage of energy, water and space. The company is clearly favored in this space as an early mover, which could result in a market leader position in a rapidly growing market.
All in all, the author believes that the aforementioned competitive position, coupled with decent execution from the management team, would result in superior EBITDA that would put the company’s stock at $32.00 by the end of CY2026. From the current stock price, the target price implies 37.6% annualized return until the end of 2026.
While we acknowledge the potential of CC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
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