Trump Admin Tailwinds Lift Ingevity's Price Target At Oppenheimer

Since its spinoff from WestRock Co WRK in May, shares of Ingevity Corp NGVT are trading up nearly 130 percent, with the sharpest spikes following quarterly earnings.

Following a meeting with company management, Oppenheimer analyst Ian Zaffino maintains an Outperform rating on the stock while raising his price target to $60 from $50. Zaffino’s thesis revolves around three key points:

1. Lead position in pine chemicals.
2. Market share in the growing vapor emission control industry, with 60 percent of auto production required to achieve zero gas fuel tank emissions by 2018.
3. “Enviable” margins.

Piling onto the tailwinds, the analyst sees the company benefiting from lower cash taxes, an increase in infrastructure spending under a Trump administration.

At the time of writing, shares of Ingevity were trading up 1.89 percent on the day at $53.26.