Update shared on 28 Nov 2025
Fair value Increased 1.28%Analysts have raised Ashland's fair value price target slightly from $62.40 to $63.20, citing updated expectations for revenue growth and evolving profitability assumptions.
What's in the News
- Ashland Inc. provided new earnings guidance for the full fiscal year 2026, projecting sales between $1,835 million and $1,905 million with an expected organic growth rate of approximately one to five percent over the previous year (Key Developments).
- A production unit at Ashland's Calvert City, Kentucky manufacturing facility was taken offline after an equipment-related incident. Repairs are underway, with completion estimated for the fiscal First Quarter 2026 (Key Developments).
- The outage at Calvert City is confined to upstream operations. The site remains partially operational, and Ashland does not anticipate any impact on customer deliveries or sales commitments. This is due to sufficient finished goods inventory and ongoing production from unaffected units (Key Developments).
- Ashland projects the primary impact of the Calvert City incident will be operational, including repair costs and some inefficiencies. The estimated Adjusted EBITDA impact is minimal in fiscal 2025, with a possible carryover impact of about $10 million in fiscal 2026. The company will update financial impact estimates as more information becomes available (Key Developments).
Valuation Changes
- The Fair Value Price Target has risen slightly, from $62.40 to $63.20.
- The Discount Rate has edged down minimally, from 8.56% to 8.56%.
- The Revenue Growth projection has increased from 2.0% to 3.0%.
- The Net Profit Margin estimate has fallen significantly, from 14.9% to 8.4%.
- The Future P/E expectation has increased sharply, from 11.1x to 19.7x.
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