Ecovyst stock price target raised to $10 from $7.50 at Citi on improved outlook

Investing.com - Citi has raised its price target on Ecovyst Inc. (NYSE:ECVT) to $10.00 from $7.50 while maintaining a Buy rating on the specialty chemicals company. According to InvestingPro analysis, Ecovyst appears undervalued at its current price of $7.65, with analysts setting targets ranging from $7.50 to $12.00.

The price target increase reflects Citi’s updated model for Ecovyst, with second-quarter 2025 and full-year 2025 EBITDA estimates increasing by 2% and 1%, respectively.

Citi cited several factors contributing to the improved outlook, including better refinery utilization, stabilizing industrial production, and reduced concerns about tariffs, which collectively point to a modestly better outlook for the second half of 2025.

The research firm also noted Ecovyst’s December 2024 announcement of a strategic review to evaluate options for maximizing the value of its Advanced Materials & Catalysts business.

Citi referenced Honeywell (NASDAQ:HON)’s recent acquisition of Johnson Matthey (LON:JMAT)’s Catalyst Technologies business as supportive of Ecovyst’s valuation, estimating a mid-teen EV/EBITDA multiple pre-synergy for that transaction.

In other recent news, Ecovyst Inc. has finalized the acquisition of sulfuric acid production assets from Cornerstone Chemical Company in Waggaman, Louisiana. This move is expected to strengthen Ecovyst’s network flexibility and supply reliability, particularly in the sulfuric acid market. The company has not disclosed the financial terms of this acquisition. Meanwhile, BWS Financial has maintained its Buy rating on Ecovyst, reiterating a $12 price target following the company’s first-quarter results. The quarter saw sales of $162.2 million, which fell short of the $172.9 million anticipated by BWS Financial due to lower performance in the ecoservices segment. However, the advanced materials segment showed positive growth, contributing to an increase in adjusted EBITDA. Despite the shortfall, Ecovyst has raised its sales forecast for the full year by $30 million, although profit metrics remain unchanged. The company’s strategic initiatives and market conditions have led to a favorable outlook from analysts, with expectations of significant financial recovery.

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