UBS analyst Joshua Spector has revised the price target for Tronox (TROX, Financial), reducing it from $11 to $10, while maintaining a Buy rating on the shares. Despite Tronox posting a minor shortfall for the first quarter, the company has not altered its guidance, according to Spector's analysis shared with investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Tronox Holdings PLC (TROX, Financial) is $12.25 with a high estimate of $25.00 and a low estimate of $7.00. The average target implies an upside of 126.43% from the current price of $5.41. More detailed estimate data can be found on the Tronox Holdings PLC (TROX) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Tronox Holdings PLC's (TROX, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Tronox Holdings PLC (TROX, Financial) in one year is $14.12, suggesting a upside of 161% from the current price of $5.41. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Tronox Holdings PLC (TROX) Summary page.
TROX Key Business Developments
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tronox Holdings PLC (TROX, Financial) delivered solid fourth-quarter results in line with expectations despite continued macroeconomic weakness.
- The company achieved stronger TiO2 commercial performance in Asia Pacific and Latin America, which helped mitigate lagging demand in Europe.
- Sales of Zircon exceeded previous guidance due to strong execution from the commercial group.
- Operational cost improvements were realized, driven by consistent and reliable operational performance.
- Tronox reduced total recordable injuries by 23% in 2024, highlighting a strong focus on safety.
Negative Points
- Tronox reported a net loss attributable to the company of $48 million for the full year.
- Free cash flow for the year was a use of $70 million, indicating cash flow challenges.
- Fourth-quarter revenue decreased by 1% compared to the prior year, driven by lower average selling prices and unfavorable product mix.
- The company faced higher mining production costs due to transitioning out of older mines, impacting financial performance.
- Working capital was a use of $103 million for 2024, driven by higher finished goods inventory levels due to slowing market demand.
