Huntsman ( NYSE: HUN ) -0.7% as UBS downgraded shares to Neutral from Buy with a $32 price target, cut from $40, citing likely reductions in earnings estimates to reflect potential compression in MDI and polyurethanes margins, as well as high relative exposure to Europe.
Huntsman ( HUN ) has ~50% sales exposure to housing, building and infrastructure, and 25% sales exposure to Europe; UBS said that while it has not yet seen significant declines in these markets show up in company earnings, it continues to see signs of slowing.
While Huntsman ( HUN ) has more exposure to downstream polyurethane systems and typically outperforms MDI spreads, UBS said it still sees a near-term downward trajectory and the risk of further downward consensus revisions.
Huntsman ( HUN ) "is an undervalued stock with exceptional strategic initiatives that have led to a phenomenal financial performance improvement since 2020," Fade The Market writes in a bullish analysis posted recently on Seeking Alpha .
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Huntsman downgraded at UBS on rising risk to earnings, demand