Truist upgraded Tronox to Hold from Sell with an unchanged price target of $7. Current share levels appropriately balance the company's potential near-term positives, namely improved TiO2 pricing dynamics and potential for share gains, with its "significant downside risks" from margin pressure and potential for demand stagnation or destruction, the analyst tells investors in a research note. The firm believes Tronox's pricing and ost actions will support margin improvement throughout this year. However, the company's near- and medium-term earnings will well below its normalized potential, Truist contends.
