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Fly News Breaks for June 15, 2017
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Jun 15, 2017 | 11:34 EDT
Chemours traded down yesterday on reports that its PFOA replacement chemistry, GenX, may have been found in the drinking water in Cape Fear, North Carolina. Susquehanna analyst Don Carson said Chemours and the state will test the discharge but notes GenX has a favorable toxicological profile and is not PFOA, which is toxic. The analyst sees limited near-term financial risk and said GenX discharges should not pose a large immediate financial risk to Chemours considering litigation would take years and there would have to be scientific research linking GenX to adverse human health outcomes. Carson would focus on continued momentum in TiO2 prices and faster adoption of the Opteon refrigerant Opteon, which are in the early stages of a multi-year cyclical recovery. The analyst rates Chemours a Positive with a $55 price target.