Huntsman’s European Facility Closure and Strategic Challenges Lead to Hold Rating

Michael Sison, an analyst from Wells Fargo, maintained the Hold rating on Huntsman (HUN – Research Report). The associated price target is $13.00.

Michael Sison has given his Hold rating due to a combination of factors impacting Huntsman’s operations. The decision to close the European Maleic Anhydride facility in Moers, Germany, reflects the challenging market conditions in Europe, which have made asset sales more difficult. This closure is expected to result in a significant one-time non-cash asset impairment charge of approximately $75 million in the second quarter of 2025.
Furthermore, Huntsman plans to continue serving its European customers from its North American facilities, which may imply logistical challenges and potential cost implications. The broader context of strategic reviews by Huntsman’s peers, such as LYB and DOW, also suggests a trend towards asset closures in Europe rather than divestitures, highlighting the ongoing difficulties in the region. These factors combined contribute to the Hold rating, indicating a cautious stance on Huntsman’s stock performance in the near term.

Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of HUN in relation to earlier this year.