KeyBanc lowers Olin stock price target to $31 on reduced earnings estimates

Published 30/07/2025, 17:38
KeyBanc lowers Olin stock price target to $31 on reduced earnings estimates

Investing.com - KeyBanc has reduced its price target on Olin (NYSE:OLN) to $31.00 from $32.00 while maintaining an Overweight rating on the chemical company’s stock. The stock currently trades at $20.06, significantly below its 52-week high of $49.59, with InvestingPro data showing 7 analysts recently revising their earnings estimates downward.

The price target adjustment announced Wednesday reflects KeyBanc’s lower earnings estimates for the company, according to analyst commentary provided with the rating update.

KeyBanc described Olin as a "standout among commodities peers" due to pricing in the chlor-alkali market facing "far less pressure" compared to other segments, with free cash flow remaining strong at the trough, excluding a one-time tax payment. The company has maintained dividend payments for 52 consecutive years, demonstrating consistent shareholder returns despite market volatility.

The investment firm noted that while China’s petrochemical capacity rationalization is not part of its base case scenario, Olin maintains "optionality" should this scenario materialize.

The analyst’s commentary suggests continued confidence in Olin’s overall position despite the slight reduction in price target, highlighting the company’s relative strength in current market conditions.

In other recent news, Olin Corporation reported its second-quarter 2025 earnings with a mixed performance. The company posted an unexpected earnings per share (EPS) loss of $0.01, falling short of the forecasted EPS gain of $0.02. However, Olin exceeded revenue expectations, reporting $1.76 billion compared to the anticipated $1.66 billion. Additionally, UBS has adjusted its price target for Olin to $22.00 from $23.00, while maintaining a Neutral rating on the stock. This adjustment reflects mixed quarterly results and a weaker outlook for Olin’s Winchester ammunition segment. The company’s third-quarter EBITDA guidance of approximately $190 million was noted to be about 12% below consensus estimates. UBS indicated that this guidance aligns more closely with investor expectations following recent industry developments. Despite these challenges, Olin’s revenue performance suggests resilience in other areas of its business.

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