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Cabot Inks Licensing Deal With Midwest Energy Emissions

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Cabot Corporation (CBT - Free Report) has signed a multi-year European licensing agreement with Midwest Energy Emissions Corp. . Per the deal, Cabot will have exclusive access to Midwest Energy Emissions’ extensive patented technologies for the developing markets across Europe.
The deal allows Cabot to enhance its range of mercury removal solutions and proven processes by leveraging Midwest Energy Emissions’ patented mercury capture technology. This move comes amid European Union’s mercury capture legislation that is expected to come into effect by 2021.
Also, the company will utilize Midwest Energy Emissions’ proprietary scrubber additive technology, a new addition to the extensive activated carbon product portfolio of Cabot. This technology will provide customers with an expanded range of mercury removal solutions that will further lower total cost of ownership.
With this deal, Cabot will be able to strengthen its current portfolio of mercury removal solutions and deliver innovative solutions for a range of complex flue-gas environments and applications. 
Cabot’s shares have lost around 3.9% over a year, as against the roughly 15.1% gain recorded by the industry.
The Zacks Consensus Estimate for fiscal 2018 earnings for Cabot is currently pegged at $4.06, reflecting an expected year-over-year growth of 18.4%. Moreover, earnings are expected to register 11.6% growth in fiscal 2019.
Cabot expects its Reinforcement Materials segment to benefit, in the fiscal second quarter, from customer agreements along with a firm spot market in Europe and Asia. Also, the Performance Chemicals segment is expected to witness an improvement on a sequential basis owing to higher seasonal volumes and the favorable impact from price increases. Continued momentum in the specialty applications is also expected to benefit the Purification Solutions segment.
Cabot Corporation Price and Consensus
Cabot currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Kronos Worldwide Inc.(KRO - Free Report) and Celanese Corporation (CE - Free Report) . Both the stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos has an expected long-term earnings growth rate of 5%. The company’s shares have moved up 46.4% in a year.
Celanese has an expected long-term earnings growth rate of 8.9%. Its shares have gained 25.8% over a year.
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