Huntsman (HUN): Evaluating Valuation After Recent Share Price Decline

Huntsman (HUN) shares have drifted lower this month, catching the attention of investors curious about its recent performance. Over the past month, the stock has slipped 9%, continuing a trend that has been seen throughout the past year.

See our latest analysis for Huntsman.

While this month’s slide might seem steep, it simply extends a longer run of poor momentum, with Huntsman’s 1-year total shareholder return now at -59.2%. The company’s share price has steadily faded through the year, which reinforces investor caution and raises questions about the outlook ahead.

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With shares trading well below analyst targets and a turbulent year in the rearview mirror, the big question is whether Huntsman's current valuation signals an undervalued opportunity or if the market is rightfully anticipating slower growth ahead.

Most Popular Narrative: 21% Undervalued

With Huntsman's fair value pegged noticeably higher than its recent closing price, the prevailing narrative points to upside potential as the company undergoes strategic shifts. This creates an intriguing setup for those weighing if the broader market is missing something in Huntsman’s turnaround prospects.

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.

Read the complete narrative.

Want to know what’s driving this bullish stance? The secret lies in a dramatic profit recovery and a bold future earnings multiple that rivals tech valuations. Which aggressive projections are at the heart of this view? Unlock the full narrative to see the financial logic that justifies this fair value.

Result: Fair Value of $10.50 (UNDERVALUED)

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

However, ongoing overcapacity in key markets and persistent high European costs could challenge Huntsman's recovery and threaten the narrative of rapid margin expansion.

Find out about the key risks to this Huntsman narrative.

Build Your Own Huntsman Narrative

If you have a different perspective or want to dig into the key numbers on your own, it's quick and easy to shape your own story 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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