2023-04-12 11:49:58 ET
Huntsman ( NYSE: HUN ) on Wednesday was rated Neutral in new coverage by analysts at Mizuho Americas. They said the chemical maker faces weaker demand in construction, a slower recovery in the automotive industry, moderating prices for a key product to make plastics and higher costs for raw materials.
They also said they’re keeping an eye Huntsman’s ( HUN ) end markets for signs that demand is recovering after bottoming out.
“We're positive longer-term as the automotive and building and construction industries rebound,” Kieran De Brun, analyst at Mizuho, said in an April 12 note. “Free cash flow should normalize, and there remains cost-cutting potential, but we stay on the sidelines due to near-term market volatility/uncertainty.”
Mizuho has a price target of $27 a share on Huntsman ( HUN ), based on a multiple of about 6.5 times estimated EBITDA for 2024 discounted back.
Huntsman’s ( HUN ) stock has fallen 22% in the 12 months through April 11, compared with a 4% decline for the Standard & Poor’s 400 midcap stock index ( SP400 ). The chemical maker is hosting its yearly shareholder meeting on April 21.
Huntsman ( HUN ) in late February completed the sale of its textile division to Archroma, a specialty chemicals company owned by SK Capital Partners, in a deal with net after-tax cash proceeds of about $540 million.
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Huntsman rated Neutral in new coverage by Mizuho Americas