Ecovyst: Balance Sheet Deleveraging and Earnings Power Undervalued, Supporting Buy Rating and Mid-Teens Upside

In a report released today, Hamed Khorsand from BWS Financial maintained a Buy rating on Ecovyst, with a price target of $12.00.

Hamed Khorsand has given his Buy rating due to a combination of factors related to Ecovyst’s improving financial and operating profile. He highlights that the company has successfully closed the sale of its Advanced Materials & Catalysts segment, generating roughly $530 million in net proceeds from the $556 million transaction. A substantial portion of these funds, about $465 million, is earmarked for paying down term debt, which materially strengthens the balance sheet. Following this transaction, Ecovyst’s cash position is expected to rise to around $147 million while total debt falls to about $389.8 million, resulting in a significantly lower net debt level of roughly $242.8 million.

Khorsand also points to the company’s earnings power as a driver of his positive view, noting that Ecovyst is projected to deliver approximately $170 million in adjusted EBITDA in 2025, with his own estimate closely aligned at $169.3 million. He acknowledges that the Ecoservices segment faced certain headwinds in 2025, but he views these issues as temporary and not likely to persist into 2026. Based on the company’s deleveraging, strengthened financial position, and earnings outlook, he believes the current share price undervalues the business. Consequently, his baseline valuation framework implies that Ecovyst’s stock should trade materially higher, in the mid-teens range, supporting his Buy recommendation and $12 twelve-month target price.

Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ECVT in relation to earlier this year.