Wells Fargo analyst Michael Sison initiated coverage of Ingevity with an Outperform rating and $100 price target. The analyst calls the company a "premier growth story in the chemical sector", pointing to its track record of double-digit growth since its spinoff from Westrock in 2016. Sison is positive on Ingevity's "unique portfolio of chemical business" featuring EBITDA margins of about 30% and supported by "strong secular growth drives." Following a "tough" year for most companies in the sector in 2019, the analyst contends that Ingevity can still generate 20% earnings and 25% EBITDA growth.

Jefferies upgraded Ingevity to Buy from Hold with a price target of $62, up from $52. The analyst says hybrid sales are outpacing electric vehicle sales, bolstering activated carbon volumes, and likely leading a 4% increase in segment sales and a 7% increase in EBITDA through 2026. Meanwhile, in Performance Chemicals, a re-stock cycle, a change in feed stocks, and a focus on higher-margined products will likely support an EBITDA rebound for Ingevity, the analyst tells investors in a research note. The firm finds the stock's valuation attractive at current share levels.