In a report released today, Laurence Alexander from Jefferies maintained a Buy rating on Huntsman (HUN – Research Report), with a price target of $24.00.
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Laurence Alexander has given his Buy rating due to a combination of factors that suggest Huntsman is poised for growth. Despite a recent earnings miss, the company is expected to benefit from a gradual recovery in the construction sector, which constitutes a significant portion of its sales. This recovery is anticipated to be driven by stable US construction activity and supportive energy costs in Europe, which will likely enhance demand for insulation products.
Additionally, the market structure for MDI is favorable, which is helping to stabilize margins despite the current weak volume environment. Furthermore, Huntsman is implementing cost-saving measures and operational improvements, such as the new splitter at Geismar, which are expected to offset some short-term challenges and contribute positively to the company’s financial performance. These strategic moves, combined with an expected increase in polyurethane volumes, underpin Alexander’s optimistic outlook for the stock.
According to TipRanks, Alexander is an analyst with an average return of -0.7% and a 48.16% success rate. Alexander covers the Basic Materials sector, focusing on stocks such as Eastman Chemical, FMC, and Sherwin-Williams Company.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $22.00 price target.