BMO Capital raises Ashland stock price target to $61 on higher EBITDA estimate

Published 02/09/2025, 13:12
BMO Capital raises Ashland stock price target to $61 on higher EBITDA estimate

Investing.com - BMO Capital raised its price target on Ashland Inc. (NYSE:ASH) to $61.00 from $60.00 while maintaining a Market Perform rating on Tuesday. According to InvestingPro data, the stock currently trades at $56.15, with analysts’ targets ranging from $53 to $79.

The price target increase was based on BMO’s higher 2026 EBITDA estimate for the company, according to the research note.

BMO analysts met recently with Ashland CEO Guillermo Novo and CFO William Whitaker to discuss current trends, near-term growth opportunities, and longer-term innovation trends.

The investment firm noted that many headwinds faced by Ashland over the past three years appear to be behind the company, causing the risk/reward profile to skew more positively.

BMO indicated that Ashland has potential to achieve a higher valuation if the company successfully executes on cost-cutting and efficiency measures, along with commercial success on its major innovation initiatives.

In other recent news, Ashland Inc . reported its fiscal third-quarter 2025 earnings, which revealed an adjusted earnings per share (EPS) of $1.04, falling short of the forecasted $1.24. The company’s revenue also missed expectations, coming in at $463 million compared to the projected $476.58 million. Argus, a research firm, has lowered its price target for Ashland to $65 from $70, citing reduced demand and inflationary pressures affecting earnings in recent quarters. Despite these challenges, Argus maintains a Buy rating on Ashland, noting its strong industry track record. Additionally, Ashland announced a quarterly cash dividend of $0.415 per share, payable on September 15, 2025, to stockholders of record as of September 1, 2025. These developments come amid a backdrop of challenging market conditions, with Ashland navigating demand fluctuations and cost pressures.

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