Wells Fargo analyst Michael Sison downgraded the rating on Ashland (ASH – Research Report) to a Hold today, setting a price target of $50.00.
Michael Sison has given his Hold rating due to a combination of factors affecting Ashland’s performance. The company has been experiencing ongoing earnings per share reductions, which have prompted a downgrade from an overweight to an equal weight rating. Despite the stock’s attractive valuation from a historical perspective, Ashland requires stronger growth to achieve multiple expansions.
Moreover, Ashland is facing increased pressure from tariffs and macroeconomic challenges, which are expected to persist in the near term. The company has reported a decline in volumes in its Specialty Additives segment, particularly in China, due to high competitive intensity in export markets. Additionally, pricing pressures across various segments, including Life Sciences and Intermediates, have contributed to the cautious outlook. These factors, combined with the anticipated tariff impacts on raw materials and finished goods, have led to a reduced price target of $50.
In another report released today, BMO Capital also maintained a Hold rating on the stock with a $60.00 price target.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ASH in relation to earlier this year.