BMO Capital analyst John McNulty maintained a Hold rating on Ashland yesterday and set a price target of $60.00.
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John McNulty has given his Hold rating due to a combination of factors impacting Ashland’s performance. The company’s recent quarterly results showed EBITDA aligning with expectations, but there were notable challenges such as competition in China affecting the Specialty Additives segment and minor shortfalls in Life Sciences and Personal Care. Management’s decision to slightly lower the fiscal year guidance reflects the uncertain macroeconomic environment, which could hinder significant recovery or growth in the near term.
Additionally, while Ashland is making progress with its restructuring efforts and cost optimization by exiting lower-margin businesses, there remains a need for clearer visibility into its normalized earnings potential and end-market demand. The company’s focus on reducing leverage instead of share buybacks also indicates a cautious approach. Given these mixed signals, McNulty maintains a Market Perform rating with a price target of $60, suggesting a balanced risk/reward scenario for investors at this time.
In another report released on July 25, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $50.00 price target.
ASH’s price has also changed moderately for the past six months – from $64.170 to $50.180, which is a -21.80% drop .