BMO Capital Downgrades Tronox Holdings to Underperform with Reduced Price Target to $3.00.

Tronox Holdings (TROX) has been downgraded by BMO Capital from "Market Perform" to "Underperform" with a reduced price target of $3.00, down from $7.00. The average target price from 8 analysts is $8.00, indicating a 57.79% upside from the current price. The average brokerage recommendation is 2.3, indicating an "Outperform" status. The estimated GF Value is $13.32, suggesting a 162.72% upside from the current price.

Tronox Holdings (TROX), a vertically integrated manufacturer of TiO2 pigment, has been downgraded by BMO Capital Markets from "Market Perform" to "Underperform" with a reduced price target of $3.00, down from $7.00 [1]. The average target price from 8 analysts is $8.00, indicating a 57.79% upside from the current price. The average brokerage recommendation is 2.3, indicating an "Outperform" status. The estimated GF Value is $13.32, suggesting a 162.72% upside from the current price.

BMO Capital Markets cited multiple challenges affecting Tronox, including a difficult demand environment characterized by weak U.S. housing, soft construction markets in China, and listless demand across Europe [2]. The research firm also highlighted high costs moving slowly through Tronox’s profit and loss statement, creating additional pressure on the company’s financial performance. BMO Capital warned of "significant risk" to Tronox’s 2025 and 2026 earnings and cash flows, adding that the company’s high leverage could put its dividend at risk.

In contrast, JPMorgan Chase & Co. upgraded shares of Tronox from a "neutral" rating to an "overweight" rating and raised their target price for the stock from $5.00 to $7.00 [1]. Other analysts have also issued varying opinions, with a consensus rating of "Hold" and a consensus target price of $7.63 [1]. Despite the current challenges, Tronox is leveraging its strategic advantages and focusing on operational efficiency and cost reduction initiatives to enhance future earnings.

References:
[1] https://www.marketbeat.com/instant-alerts/bmo-capital-markets-downgrades-tronox-nysetrox-to-underperform-2025-06-30/
[2] https://www.investing.com/news/analyst-ratings/tronox-stock-rating-downgraded-by-bmo-capital-on-demand-challenges-93CH-4116509