Ingevity (NGVT) Stock Gets ‘Overweight’ Rating at KeyBanc

Ingevity (NGVT) stock coverage was started with an ‘overweight’ rating and $43 price target at KeyBanc on Thursday morning.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Ingevity (NGVT) - Get Report stock coverage was initiated with an "overweight" rating and $43 price target at KeyBanc Capital Markets on Thursday morning.

The North Charleston, SC-based company is a manufacturer of specialty chemicals, carbon materials and technologies.

"We believe NGVT offers investors a high quality specialty chemical portfolio with solid secular growth drivers and manageable exposure to the potential for rising demand in energy markets," the firm wrote in an analyst note.

The company has a leading market position in high performance activated carbon materials and is a leader in pine chemicals, according to KeyBanc.

Additionally, the firm said Ingevity has high margins with solid sales growth potential.

Performance chemicals have struggled, but should bottom in 2016 and represent about 40% of the company's earnings power, KeyBanc noted.

"On the positive, cost savings should drive $25 million-$30 million, while pavement technologies see double-digit growth offsetting another down year in oilfield technologies and industrial specialties," the firm added.

Shares of Ingevity closed higher by 0.72% to $34.95 on Wednesday.

Loading ...