Olin (OLN – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Vincent Andrews from Morgan Stanley maintained a Sell rating on the stock and has a $20.00 price target.
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Vincent Andrews has given his Sell rating due to a combination of factors impacting Olin’s financial outlook. The company’s earnings per share (EPS) estimates have been significantly downgraded for the upcoming quarters and years, reflecting a more challenging market environment than previously anticipated. The revised EPS for 2Q25 is now expected to be a loss, deviating from earlier positive projections and consensus expectations.
Furthermore, the EBITDA forecasts have also been adjusted downward, indicating weaker operational performance. This is attributed to several issues, including reduced demand for chlorine and vinyl products, partly due to slower building and construction activities. Additionally, a chlorine leak at Olin’s Freeport facility has caused operational disruptions, and the Winchester segment is experiencing slower growth due to light consumer demand. Changes in energy values and contract prices for key products like chlorine and caustic soda have also contributed to the less favorable financial outlook.