Jefferies lowers Huntsman stock price target on construction weakness
Investing.com
Published Jun 16, 2025 05:53AM ET
Jefferies lowered its price target on Huntsman (NYSE:HUN) stock to $17.00 from $19.00 on Monday, while maintaining a Buy rating on the chemical manufacturer. The stock, currently trading at $10.90, has declined about 40% over the past six months and sits near its 52-week low of $10.74.
The research firm cited ongoing softness in construction and automotive demand that will likely continue to impact Huntsman's volumes and MDI spreads throughout the summer. Jefferies noted that any seasonal uptick in business has likely been muted.
The firm expects Huntsman's second-quarter EBITDA to be near the low end of the $60-$90 million range. Jefferies also reduced its 2025 EBITDA estimate by 13% due to weaker-than-normal conditions anticipated in the second half of this year.
Jefferies projects that a cyclical recovery for Huntsman will be delayed until late 2026-2027, with the company potentially not returning to mid-cycle performance until the end of the decade.
Despite the reduced price target, Jefferies maintained its Buy rating on the chemical company, suggesting longer-term confidence in Huntsman's business prospects despite the near-term headwinds in its key markets.
In other recent news, Huntsman Corporation reported its first-quarter 2025 earnings, revealing a slight miss in both earnings per share (EPS) and revenue compared to analysts' expectations. The company posted an EPS of -$0.11, falling short of the forecasted -$0.10, while revenue reached $1.41 billion, missing the expected $1.5 billion. These results reflect ongoing market challenges and operational hurdles. Additionally, Huntsman Corporation and its subsidiary, Huntsman International LLC, have amended their 2022 Revolving Credit Agreement. This amendment increases the maximum permitted leverage ratio through December 31, 2026, and imposes restrictions on certain payments. These financial adjustments aim to provide Huntsman with greater flexibility in managing its debt. Furthermore, the company announced a plan to double its cost savings target to $100 million, reflecting its strategic efforts to optimize operations. The recent developments underscore Huntsman's focus on navigating current market volatility and aligning its operations with long-term objectives.
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