02:57 PM EDT, 07/09/2024 (MT Newswires) -- Chemours' ( CC ) low share valuation and conservative estimates are expected to pivot as earnings in TiO2 return to normal and demand for refrigerants improves by 2025, UBS said in a note Tuesday.

"We expect the near-term will remain choppy, and see 2024 as a transition year for the company," the firm said.

This year has been more chaotic than expected, but the company's HFO refrigerants should benefit from the shift in regulations.

"We expect inventory will be worked down over the summer cooling season, and the [Environmental Protection Agency] mandates on new stationary HVAC systems (to use new HFO containing blends) will be a positive demand driver over the next year," UBS added.

Chemours ( CC ) is developing a two-phase immersion coolant for data centers, not factored into current estimates, that could offer significant growth after 2027, according to the note.

UBS raised Chemours' ( CC ) stock to buy from neutral and price target to $30 from $28.

Price: 22.46, Change: +0.14, Percent Change: +0.63