In a report released today, Jeffrey Zekauskas from J.P. Morgan upgraded Ashland (ASH – Research Report) to a Buy, with a price target of $71.00.
Jeffrey Zekauskas has given his Buy rating due to a combination of factors including Ashland’s stabilization after a challenging period and its promising long-term potential. The company, which operates in the specialty additives and materials sector, has experienced a downturn due to customer de-stocking and weak demand in certain markets. However, Zekauskas views these issues as temporary rather than structural, suggesting that Ashland’s business is on the path to recovery.
Furthermore, Ashland’s current valuation appears attractive, trading at a relatively low EV/EBITDA multiple compared to its historical averages. The company’s solid balance sheet and expected free cash flow generation add to its appeal. Zekauskas anticipates a significant upside in Ashland’s stock price, with a price target that reflects a substantial appreciation from current levels. The analyst also highlights the potential for enhanced financials due to tax benefits, making Ashland a compelling investment opportunity at this time.
In another report released on March 17, Mizuho Securities also maintained a Buy rating on the stock with a $68.00 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.