Analysts have raised Ecovyst’s price target from $11.33 to $12.08, citing the sale of its AM&C business as a key catalyst that streamlines operations, improves the risk/reward profile, and enables strategic uses of divestiture proceeds including debt reduction and potential shareholder returns.
Analyst Commentary
- Bullish analysts see the sale of the AM&C business as a positive catalyst, removing a volatile segment and streamlining Ecovyst’s portfolio.
- Proceeds from the divestiture are expected to provide significant cash, enabling debt reduction and potential shareholder returns.
- The transaction demonstrates a higher underlying valuation for Ecovyst, highlighting perceived undervaluation by public markets.
- Bullish analysts believe these changes improve the risk/reward profile and support a higher price target.
- Bearish analysts adopt a more neutral stance after the divestiture, viewing risk/reward as more balanced rather than compellingly positive.
What's in the News
- Completed share repurchase program, buying back 27,490,490 shares (21.51% of shares) for $242.28 million.
- Repurchased 2,926,152 shares (2.49%) for $21.85 million during Q2 2025 as part of the program.
- Updated 2025 full-year sales guidance to $795–$835 million, narrowing from previous range of $785–$845 million.
- Raised sales guidance for 50% share of Zeolyst Joint Venture to $125–$140 million, up from $115–$130 million.
Valuation Changes
Summary of Valuation Changes for Ecovyst
- The Consensus Analyst Price Target has risen from $11.33 to $12.08.
- The Consensus Revenue Growth forecasts for Ecovyst has significantly fallen from 7.3% per annum to 4.5% per annum.
- The Net Profit Margin for Ecovyst has risen from 18.35% to 19.84%.
Disclaimer
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