Morgan Stanley analyst Vincent Andrews maintained a Hold rating on Huntsman (HUN – Research Report) today and set a price target of $20.00.
Vincent Andrews has given his Hold rating due to a combination of factors impacting Huntsman’s financial outlook. The company’s earnings per share (EPS) estimates have been adjusted downward for the upcoming quarters and years, reflecting a more pessimistic view compared to consensus expectations. This revision is primarily driven by weaker than anticipated demand for MDI, particularly in the European market, which has led to a reassessment of the company’s revenue projections.
Additionally, Huntsman is facing margin pressures due to rising costs of natural gas and benzene, which are key inputs in their production processes. These cost increases are expected to compress margins further, impacting the overall profitability of the company. Given these challenges, the Hold rating suggests that while the stock may not be poised for significant growth, it is also not expected to decline drastically, warranting a cautious approach from investors.
According to TipRanks, Andrews is a 4-star analyst with an average return of 5.3% and a 61.33% success rate. Andrews covers the Basic Materials sector, focusing on stocks such as Huntsman, Mosaic Co, and Sherwin-Williams Company.