Professional
Added to YB: 2026-07-10
Pitch date: 2026-05-02
CBT [bearish]
Cabot Corporation
-11.75%
current return
Author Info
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Company Info
Cabot Corporation operates as a specialty chemicals and performance materials company. It operates through two segments, Reinforcement Materials and Performance Chemicals.
Market Cap
$4.5B
Pitch Price
$76.53
Price Target
60.00 (-28%)
Dividend
2.16%
EV/EBITDA
7.26
P/E
16.51
EV/Sales
1.59
Sector
Chemicals
Category
turnaround
Cabot Corporation - $CBT (short)
CBT (short): Short at ~$76, PT $60 (-21%). Reinforcement Materials (65% rev/68% EBITDA) hit by falling Western tire production (Asian imports ~40% US supply), CY26 pricing reset -7-9%, sub-80% utilization, and Indian CB imports accelerating post US-India deal (effective tariff ~20%→8-9%). Pre-Russia 19% RM EBITDA margin is ceiling not floor; consensus FY26 guide back-end loaded hockey stick contradicts pricing math. Battery Materials real but ~$34M EBITDA can't offset core decline. ~6.9x FY26E EV/EBITDA. Normalize to $369M RM EBITDA vs $482-506M consensus. Catalysts: further India share gains, Russia reentry, FY26 guide cuts.
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