ASH - Ashland on the rise despite sales guidance cut Evercore downgrade
2023-06-29 14:34:58 ET
Ashland ( NYSE: ASH ) +3.5% in Thursday's trading even after the chemical company cut its full-year sales guidance below analyst consensus, prompting a downgrade from Evercore ISI.
Ashland ( ASH ) "has come through an unprecedented period of inflation in a tight capacity environment where pricing led to the upside, [but] the pendulum has now likely swung too far in the other direction, and the 'hangover' from this period is likely to last longer than... the bulls anticipated," Evercore ISI wrote in downgrading the stock to In-Line from Outperform with a $100 price target, trimmed from $115.
But the firm also touted its thesis that Ashland's ( ASH ) transformation to a specialty additives company ultimately will drive multiple expansion, saying despite the low visibility, "this will likely prove a good entry point for someone."
More on Ashland:
- Financial and valuation comparison to sector peers
- Analysis: Ashland: A Tougher 2023
- Stock price return: Down 22.5% YTD, down 18% in the past 12 months
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Ashland on the rise despite sales guidance cut, Evercore downgrade