Citi analyst Patrick Cunningham, CFA has maintained their bullish stance on ECVT stock, giving a Buy rating today.
Patrick Cunningham, CFA has given his Buy rating due to a combination of factors influencing Ecovyst’s future performance. Despite anticipated short-term challenges, such as maintenance turnarounds by several refining customers and a temporary dip in advanced silicas, the company is expected to recover and perform well in the latter half of 2025. This recovery is supported by increased demand for hydrocracking catalysts and sustainable fuels, which are projected to drive sales growth.
Furthermore, while there is a slight reduction in EBITDA estimates for 2025 and 2026 due to margin pressures, the anticipated volume growth in Ecoservices and AM&C, along with strong demand for virgin sulfuric acid and treatment services, provides a positive outlook. The valuation of Ecovyst based on a 6.5x EV/EBITDA multiple, leading to a target price of $9.0, suggests a potential share price return of approximately 29.9%, justifying the Buy rating.
According to TipRanks, Cunningham, CFA is an analyst with an average return of -1.1% and a 44.71% success rate. Cunningham, CFA covers the Basic Materials sector, focusing on stocks such as Huntsman, PPG Industries, and FMC.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $10.00 price target.