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Investing.com - Jefferies has reduced its price target on Orion Engineered Carbons S.A. (NYSE:OEC) to $14.00 from $15.00 while maintaining a Buy rating on the stock. The company, currently trading at $10.16, has seen its shares decline over 35% year-to-date. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The firm cited near-term demand headwinds as a key factor in its decision to lower the price target for the engineered carbon materials manufacturer.
Jefferies adjusted its EBITDA estimates downward, reducing its 2025 forecast by 1%, and its 2026 and 2027 projections by 3% each to reflect expectations of slower performance over the coming quarters.
Despite the near-term challenges, Jefferies noted that Orion should benefit from shifts in trade flows in 2026-2027, potentially creating more favorable market conditions for the company.
The firm also highlighted an anticipated uptick in demand for specialty blacks during the 2026-2027 timeframe, which could provide additional growth opportunities for Orion Engineered Carbons.
In other recent news, Orion Engineered Carbons reported its financial results for the second quarter of 2025, missing both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.32, which was below the anticipated $0.37, marking a negative surprise of 13.51%. Revenue also fell short of expectations, coming in at $466.4 million compared to the forecasted $473.35 million, a shortfall of 1.47%. Despite these results, Orion’s stock experienced a notable after-hours rally. The stock price increased by 12.05% to $10.88. These developments highlight the recent financial performance of Orion Engineered Carbons.
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