- JPMorgan raises its rating on Chemours to overweight from neutral, saying the company's earnings will beat expectations next year.
- The firm increases its price target
forthe stock to $50 a share from $39.
Investors should buy Chemours because earnings will top expectations next year from rising demand for its air conditioner chemicals, according to JPMorgan, which raised its rating on the company to overweight from neutral.
"The simple and broad outline of the investment case for Chemours is that the company has a proprietary set of very profitable newer generation refrigerants with patent lives extending to 2022 with excellent growth potential," analyst Jeffrey Zekauskas wrote in a note to clients Friday. "These new refrigerants are now growing quickly because of demand from the auto OEM market in the US and Europe inspired by regulatory changes to incentivize the use of technology that minimizes global warming."
Chemours shares are up more than 300 percent in the past 12 months through Thursday as investors overcame the bear thesis concerning its legal liabilities.