Bank of America Securities analyst Salvator Tiano has reiterated their bullish stance on ESI stock, giving a Buy rating today.
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Salvator Tiano has given his Buy rating due to a combination of factors that highlight Element Solutions’ strong performance and future potential. The company reported an impressive organic growth rate of 6% in the second quarter, despite a flat performance in its legacy industrial market segment. This growth is particularly noteworthy given the challenging macroeconomic environment, and it aligns well with the current tech investment cycle.
Furthermore, Element Solutions’ management has provided a new full-year guidance that suggests potential for even better performance, indicating a conservative outlook that leaves room for positive surprises. The company’s financial leverage is below target, and it consistently generates free cash flow, which is expected to enhance shareholder returns. Additionally, the power electronics business showed double-digit growth, and there is optimism about the EV market and smartphone demand contributing to future growth. These factors, combined with strategic M&A plans and a favorable valuation adjustment, underpin Tiano’s Buy rating.
According to TipRanks, Tiano is an analyst with an average return of -7.6% and a 46.15% success rate. Tiano covers the Basic Materials sector, focusing on stocks such as Celanese, Element Solutions, and PPG Industries.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $30.00 price target.