Salvator Tiano, an analyst from Bank of America Securities, reiterated the Buy rating on Huntsman (HUN – Research Report). The associated price target is $22.00.
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Salvator Tiano has given his Buy rating due to a combination of factors that suggest a promising recovery path for Huntsman. Despite pressure from foreign exchange and energy costs, Huntsman’s first-quarter EBITDA outlook exceeded market expectations, which is particularly notable as other companies in the same sector are struggling. This resilience in a challenging environment suggests that the most difficult period for Huntsman’s earnings is over, and there is significant potential for earnings growth when demand rebounds.
Furthermore, Tiano highlights that Huntsman’s shares provide an attractive risk-reward proposition, supported by a nearly 6% dividend yield that appears sustainable based on their free cash flow. The company’s strategic maneuvers, including reviewing options for its European maleic anhydride facility, could lead to increased efficiency and profitability. These factors collectively underpin Tiano’s confidence in Huntsman’s stock, leading to the reiteration of a Buy rating with a price objective of $22.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $24.00 price target.