BMO Capital Raises Ingevity PT to $68, Maintains Outperform Rating

BMO Capital Raises Ingevity PT to $68, Maintains Outperform Rating

BMO Capital has raised its price target for Ingevity Corporation (NGVT) to $68 from $62, while maintaining an Outperform rating on the specialty chemicals company. The stock has shown strong momentum, gaining over 54% in the past year and trading near its 52-week high of $58.73. The price target increase follows Ingevity’s announcement of the sale of its CTO Refinery and most of its InSpec business within the Performance Chemicals platform [2].

BMO Capital noted that the transaction was completed at a "solid high-teens multiple," which the firm believes will reduce earnings volatility and improve the margin profile of Ingevity’s business. The research firm expects Ingevity CEO Li to communicate his vision for the company in late 2025 or early 2026, including potential additional portfolio optimization actions, long-term growth strategy, and financial priorities. These upcoming strategic communications are seen as potential catalysts for the stock, supporting BMO Capital’s decision to maintain an Outperform rating on Ingevity shares [2].

In other recent news, Ingevity reported its second-quarter earnings for 2025, with earnings per share of $1.39, surpassing the forecasted $1.16. However, the company’s revenue fell short of expectations, coming in at $365 million compared to the forecasted $378.7 million. Ingevity has also entered into a definitive agreement to sell its North Charleston crude tall oil refinery assets and most of its Performance Chemicals Industrial Specialties product line to Mainstream Pine Products for approximately $110 million in cash. This transaction could include additional contingent payments of up to $19 million and is expected to close by early 2026 [2].

References:
[1] https://www.marketscreener.com/news/mainstream-pine-products-llc-entered-into-an-asset-purchase-agreement-to-acquire-substantially-all-ce7d59d8df8cf32c
[2] https://www.investing.com/news/analyst-ratings/ingevity-stock-price-target-raised-to-68-from-62-at-bmo-capital-93CH-4224920