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J.P. Morgan Upgrades Tronox Holdings (TROX) to Overweight, Lifts PT

J.P. Morgan analyst Jeffrey Zekauskas upgraded Tronox Holdings plc (NYSE:TROX) to Overweight from Neutral on May 30, and raised the price target to $7 from $5. The analyst based the rating upgrade on various factors, suggesting an optimistic outlook for the company’s future operations.

One of the key factors supporting the rating is the expected rise in titanium dioxide (TiO2) prices in Q2 or Q3 2025 following a period of decline. When considered in conjunction with the implementation of tariffs on Chinese exports to markets like Brazil and India, the analyst expects this potential price hike to provide Tronox Holdings plc (NYSE:TROX) with opportunities to enhance its pricing power and gain market share.

A close-up look at specialized machinery grinding up titanium dioxide pigment into ultrafine particles used as a colorant in paints, coatings, plastics, and paper.

The analyst also reasoned that Tronox Holdings plc (NYSE:TROX) is poised to benefit from various cost-cutting initiatives valued at around $230 million. These initiatives include idling the Botlek plant, working through high-cost inventory, and applying a cost-improvement plan to slash costs by the end of 2026.

Zekauskas anticipates these initiatives to support the company’s dividend yield and stabilize its earnings. Tronox Holdings plc (NYSE:TROX) may also achieve earnings growth through reduced capital expenditures in the coming years, which could enhance free cash flow.

Tronox Holdings plc (NYSE:TROX) is engaged in the mining and inorganic chemical business. It processes and mines zircon, titanium ore, and other minerals. The company also manufactures titanium dioxide pigments and produces Titanium Dioxide Mineral Sands.

While we acknowledge the potential of TROX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TROX and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best Debt Free IT Penny Stocks To Buy and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

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