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:
- Lead position in pine chemicals.
- 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.
- “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.
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