Analyst Vincent Andrews from Morgan Stanley maintained a Hold rating on Huntsman (HUN – Research Report) and decreased the price target to $13.50 from $20.00.
Vincent Andrews has given his Hold rating due to a combination of factors impacting Huntsman’s market position. The company’s exposure to tariffs poses a significant risk, potentially exacerbating an already challenging supply and demand scenario. Andrews has revised the price target to $13.50, reflecting a lower EBITDA multiple for 2026, which is still a stretch given the current market conditions.
Moreover, the MDI markets are expected to remain well supplied, and there’s a risk that Huntsman’s valuation multiple could contract further if the market perceives the current situation as a new normal rather than a temporary trough. The forecast for 2025 remains challenging due to macroeconomic weaknesses and order book disruptions from tariff uncertainties. While there is potential for improvement in 2026 and beyond, the timing and scale of this recovery remain uncertain. Therefore, Andrews maintains an Equal-weight stance, indicating a balanced risk-reward scenario with significant upside potential but also meaningful downside risks.