UPDATE: BWS Financial Downgrades Tronox Limited to Hold; Speculated Acquisitions Not Favorable

BWS Financial downgraded Tronox Limited (NYSE: TROX) from Buy to Hold with a $20.00 price target.

BWS Financial said, "There have been many rumors of TROX looking to do one large acquisition. We do not believe such consolidation would be of great benefit to shareholders, and there remains the risk of TiO2 prices not rising this year. … We fear any large acquisition would put TROX in a disadvantageous position. Without TiO2 prices roaring back TROX would end up with a levered balance sheet and could end up not having a natural hedge against feedstock price volatility."

Tronox Limited closed at $21.75 on Friday.