Assessing Huntsman (HUN) Valuation Following Modest Share Price Uptick and Ongoing Weak Performance

Huntsman (HUN) shares have moved slightly higher over the past day. However, the company’s longer-term performance continues to trail the broader market. Investors appear to be weighing Huntsman’s recent results in light of an extended period of weak returns.

See our latest analysis for Huntsman.

While Huntsman’s share price tipped up 1.35% over the past day, the bigger picture is tough to ignore. With a staggering 61.4% total shareholder loss in the past year and long-term returns also deeply negative, momentum is still fading for shareholders. This highlights ongoing concerns even after scattered recent upticks.

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With shares trading at a significant discount to analyst targets but long-term performance remaining weak, the big question is whether Huntsman is truly undervalued right now or if the market already reflects its growth prospects.

Most Popular Narrative: 23.2% Undervalued

With Huntsman’s narrative fair value sitting sharply above the current closing price, the valuation case is catching fresh attention. Bulls and bears may see the discount differently, but the central assumptions powering this view set the stage for a much-debated outcome.

The company is actively transforming its portfolio away from lower-margin, commodity chemicals toward specialty chemicals (such as adhesives, elastomers, and aerospace composites), aiming to further improve EBITDA margins and overall profitability in future cycles. Cost optimization, working capital discipline, and strategic asset closures (such as the maleic anhydride facility in Europe) are expected to enhance free cash flow generation and support improved net margins and earnings resilience during the next macro upturn.

Read the complete narrative.

Want to know what underpins this aggressive fair value? The narrative draws on audacious profit margin rebounds and a future multiple rarely seen outside market darlings. Curious about the bold revenue shifts and fundamental assumptions behind this price target? The full breakdown reveals the real numbers fueling the optimism.

Result: Fair Value of $10.73 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued overcapacity in core polyurethane markets, along with persistently weak construction demand, could quickly undermine forecasts of margin improvement and sustainable earnings recovery.

Find out about the key risks to this Huntsman narrative.

Build Your Own Huntsman Narrative

If this narrative doesn’t align with your view, or you’d rather dig into the details yourself, you can quickly shape your own perspective in just a few minutes. Do it your way

A great starting point for your Huntsman research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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