Analyst Bhavesh Lodaya from BMO Capital maintained a Buy rating on Element Solutions (ESI – Research Report) and keeping the price target at $34.00.
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Bhavesh Lodaya has given his Buy rating due to a combination of factors related to Element Solutions’ financial performance and strategic outlook. The company’s results for the fourth quarter and the guidance for the first quarter of 2025 were in line with market expectations despite facing foreign exchange headwinds. This reflects management’s ability to navigate challenging macroeconomic conditions while maintaining stable performance.
Additionally, Element Solutions has demonstrated strong free cash flow generation and a significant capital allocation strategy, with up to $1 billion available for deployment. This capital is expected to be used for inorganic growth opportunities and share buybacks, signaling a proactive approach to enhancing shareholder value. Despite a conservative outlook for 2025, driven by uncertainties related to tariffs and foreign exchange, the company’s organic growth prospects and healthy EBITDA margins underpin the Buy rating.
According to TipRanks, Lodaya is a 4-star analyst with an average return of 9.8% and a 66.67% success rate.