Ashland (ASH – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Laurence Alexander from Jefferies maintained a Buy rating on the stock and has a $71.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Laurence Alexander has given his Buy rating due to a combination of factors that highlight Ashland’s potential for growth and value creation. One of the key reasons is Ashland’s focus on developing and scaling new R&D platforms, which are expected to significantly contribute to organic growth over the next decade. These platforms, tailored to specific applications, could enhance the company’s growth trajectory by 3% to 8% in the long term.
Additionally, Ashland’s strategic emphasis on high-value sectors such as personal care, pharmaceuticals, and specialty additives is projected to drive incremental revenue growth. The company anticipates substantial contributions from these platforms, with a forecast of $100 million in additional revenues by 2027. Furthermore, Ashland’s financial targets, including improved EBITDA margins and free cash flow conversion, alongside a reduction in financial leverage, support the case for a re-rating. The potential for narrowing the valuation gap with larger peers also adds to the positive outlook, making Ashland an attractive investment opportunity.