Gold prices edge up amid Fed rate cut hopes; US-Russia talks awaited
Investing.com - JPMorgan maintained its Overweight rating and $67.00 price target on Ashland Inc . (NYSE:ASH) on Friday, while noting that consensus estimates for the company’s third-quarter earnings might be slightly optimistic. According to InvestingPro data, the stock is currently trading at $51.01 and appears undervalued based on Fair Value analysis.
The investment bank’s third-quarter EBITDA estimate for Ashland stands at $112 million, below the consensus average of $117.5 million for the quarter ending June. JPMorgan’s full-year fiscal 2025 EBITDA estimate remains unchanged at $400 million, compared to the Street’s expectation of $407.5 million. InvestingPro data shows that 7 analysts have recently revised their earnings estimates downward, with analyst targets ranging from $50 to $85.
JPMorgan pointed out that June quarter business activity has been trending softly for many industrial and consumer companies, suggesting Ashland is likely experiencing similar conditions. This softness appears to be factored into the bank’s more conservative outlook compared to consensus estimates.
The firm expects Ashland’s Life Sciences segment to continue facing pricing challenges, though the rate of decline appears to be moderating. Average prices in this segment are projected to be approximately 2% lower year-over-year in the third quarter of fiscal 2025.
Despite these near-term challenges, JPMorgan maintained its Overweight rating on Ashland stock, indicating a positive long-term outlook for the specialty chemicals company despite the potential for softer-than-consensus quarterly results. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 2.32 and has maintained dividend payments for 55 consecutive years. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report.
In other recent news, Ashland Global Holdings Inc. reported second-quarter financial results that fell short of analyst expectations, with earnings per share (EPS) at $0.99 compared to the forecasted $1.14, and revenue reaching $479 million, below the anticipated $513 million. This performance led to a revised full-year sales guidance of $1,825-$1,900 million. Despite the disappointing earnings, Jefferies maintained a Buy rating on Ashland, raising its price target from $68 to $71, citing the company’s potential earnings growth through operational leverage and innovation in the coatings and personal care markets. Jefferies also suggested that Ashland could achieve a 9x EV/EBITDA multiple within 18 months, reflecting confidence in the company’s strategic direction.
Meanwhile, Valvoline Inc (NYSE:VVV). announced the appointment of Kevin Willis as its new Chief Financial Officer, effective May 19, 2025. Willis, who previously held the CFO position at Ashland Inc., is expected to contribute significantly to Valvoline’s strategic goals with his expertise in capital markets management and operational efficiency. Valvoline’s leadership expressed confidence in Willis’s ability to add immediate value to the company. These developments come as Ashland continues to focus on cost management and productivity improvements, despite facing challenges such as reduced consumer sentiment and competitive pressures in key markets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.