Wells Fargo analyst Michael Sison assigned a Hold rating on Ingevity (NGVT – Research Report) yesterday and set a price target of $40.00.
Michael Sison has given his Hold rating due to a combination of factors surrounding the unexpected departure of Ingevity’s CEO and the interim appointment. The sudden exit of President and CEO John Fortson, who had a tenure of over nine years, came as a surprise and was announced with limited details, raising uncertainties about the company’s future leadership and direction. Although the board has appointed Luis Fernandez-Moreno as interim CEO, who has a strong track record in the specialty chemicals industry, the search for a permanent replacement adds an element of unpredictability to the company’s stability and strategic initiatives in the near term.
Additionally, the timing of this leadership change, just before the release of third-quarter results, could be a critical juncture for the company. Investors may adopt a cautious stance until the new leadership is in place and the impact on the company’s performance and strategic plans becomes clearer. Sison’s Hold rating reflects this cautious optimism, acknowledging Fernandez-Moreno’s capable interim leadership but also recognizing the potential challenges and uncertainties that come with a sudden executive transition.
According to TipRanks, Sison is a 4-star analyst with an average return of 5.4% and a 54.34% success rate. Sison covers the Basic Materials sector, focusing on stocks such as RPM International, Dow Inc, and Ashland.
In another report released on September 30, BMO Capital also maintained a Hold rating on the stock with a $40.00 price target.
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Ingevity (NGVT) Company Description:
Ingevity Corp engages in the manufacture of specialty chemicals and carbon materials. It operates through the following segments: Performance Chemicals and Performance Materials. The Performance Materials segment consists of automotive technologies and process purifications product families. Automotive technologies produces automotive carbon products used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats. Process purifications produce a number of activated carbon products for food, water, beverage and chemical purification applications. The Performance Chemicals segment primarily addresses applications in three product families: pavement technologies, oilfield technologies, and industrial specialties. The company was founded on March 27, 2015 and is headquartered in North Charleston, SC.
