HUN - Huntsman: 2024 Could Be The Beginning Of A Recovery
2024-03-18 01:19:20 ET
Summary
- Given softer end market demand, Huntsman's financial performance has weakened in the past two years.
- For 2023, Huntsman's revenue, adjusted EBITDA, and adjusted EPS each declined.
- Management remains positive about the future but acknowledges that the exact timing of recovery remains uncertain.
- Management, nevertheless, has seen moderate improvement in early 2024 from the lows experienced in the fourth quarter of 2023. Analysts expect EPS to rise moderately in 2024 and more in 2025.
- I rate Huntsman a 'Buy' as in 'equal weight' in a diversified portfolio, given its relatively attractive forward valuation in 2026 and its potential to benefit from more infrastructure/construction demand in the future.
Huntsman Corporation ( HUN ) is a multinational chemical company that has three segments, Polyurethanes, Performance Products, and Advanced Materials.
In 2023, Huntsman's Polyurethanes business accounted for 63% of segment revenues, performance products accounted for 19%, and advanced materials accounted for 18%....
Huntsman: 2024 Could Be The Beginning Of A Recovery