Analysts have lowered their price target for Huntsman by $0.50 to $10.73. They cite continued industry headwinds, weaker demand in durables markets, and increased overseas competition as primary concerns for the company's outlook.
Analyst Commentary
Analyst sentiment on Huntsman remains mixed, with recent research updates highlighting both areas of caution and opportunities for improvement. Several price target adjustments reflect evolving expectations for the company's near-term performance, particularly amidst significant industry and competitive challenges.
Bullish Takeaways- Bullish analysts note that shares of Huntsman have rebounded substantially. They are up 20% since its recent earnings report, suggesting that the market still sees potential for recovery.
- Some believe the worst of the industry downturn may have passed, with updated price targets reflecting a broader recovery in market multiples across the chemicals sector.
- The company’s focus on specialty and defensive markets is seen as a relative strength in the current environment and could offer greater resilience amid volatility.
- A pause in tariffs may have stimulated short-term demand. This has provided a temporary boost to the company’s order book and is supporting the valuation in the near term.
- Bearish analysts are concerned that industry fundamentals remain weak, with limited signs of sustainable demand improvement in core markets such as durables.
- Increased overseas competition, especially from imports of polyurethane methylene diphenyl diisocyanate, continues to pressure Huntsman's margins and threatens future growth prospects.
- Recent price target reductions, down to as low as $9, signal caution regarding execution risk and the company’s ability to defend its market share in a challenging environment.
- There are apprehensions that recent gains in the stock price could prove short-lived. Shares may retest previous lows if macroeconomic conditions do not improve.
What's in the News
- Huntsman has completed the repurchase of 48,158,253 shares, representing 24.46% of shares outstanding, for a total of $1,452.51 million under the buyback program announced on November 9, 2021 (Key Developments).
- During the most recent buyback period from April 1, 2025 to June 30, 2025, the company did not repurchase any additional shares. This signals a pause in its share buyback activity (Key Developments).
Valuation Changes
- Fair Value Estimate has decreased from $11.23 to $10.73, reflecting a modest reduction in perceived intrinsic value.
- Discount Rate has risen from 9.8% to 10.9%, indicating higher expected risk or uncertainty in future cash flows.
- Revenue Growth forecast has edged down slightly, moving from 2.74% to 2.62%.
- Net Profit Margin projection has increased marginally, from 0.69% to 0.69%.
- Future P/E Ratio has decreased from 60.0x to 59.0x, signaling a slight compression in anticipated valuation multiples.
Disclaimer
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