Jefferies upgraded Quaker Houghton (KWR) to Buy from Hold with a price target of $146, up from $115. The firm says that solid margins and return on capital employed above 2019 levels despite soft end markets, a 64% cut in the stock’s valuation over four years leading to share prices last seen when earnings per share were less than $5, and a 7% free cash flow yield mark Quaker as a “good quality-at-a-reasonable-price candidate.” The company’s earnings are likely to inflect in 2026, shifting the focus to the company’s competitive advantage and cyclical leverage, the analyst tells investors in a research note. Jefferies says a re-rating to match Quaker’s quality compounder peers would imply a $245 share price in 2027.
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