Deutsche Bank issued a catalyst call buy idea on Ashland Inc. ( NYSE: ASH ) ahead of the company's earnings report.
Analyst David Beleiter and team believe Ashland will report FQ4 EBITDA at or the above the high-end of its EBITDA guidance range of $138M to $148M and provide a positive out look for FQ1 of 2023. FQ1'23 outlook.
"We expect these strong results and outlook to be driven by pricing more than offsetting higher raw material, freight and energy costs and a continuing mix shift to high margin, high value products in Life Sciences and Personal Care. With upcoming FQ4 results likely to mark the third straight quarter of strong results for Ashland and further highlight the improved business model, strategy and execution which are now fully in place at the company (and working well), we believe investors will begin to value Ashland as a high-margin, high-quality additives and ingredients company."
Ashland's ( ASH ) 7X EBITDA discount to its closest additive and ingredients peer is seen narrowing as earnings improve.
Deutsche Bank has a Buy rating on Ashland.
Shares of Ashland ( ASH ) are down 10.16% on a year-to-date basis.
The Seeking Alpha Quant Rating on ASH is flashing Strong Buy.
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Ashland is a catalyst call buy idea at Deutsche Bank