U.S. stocks edge higher; solid earnings season continues
Investing.com - KeyBanc Capital Markets has reiterated its Sector Weight rating on Huntsman (NYSE:HUN) as the chemical manufacturer continues to face pressure from weak demand and competitive pricing. According to InvestingPro data, the stock has declined 47% year-to-date and currently trades near its 52-week low of $9.03, reflecting these challenges. InvestingPro analysis indicates the stock may be undervalued at current levels.
According to KeyBanc analyst commentary, demand across Huntsman’s key markets including automotive, building and construction, and aerospace remains stable but has not recovered from the negative trends that emerged in early second quarter.
The company is experiencing earnings pressure from lower volumes, while its MDI (methylene diphenyl diisocyanate) business faces aggressive price competition from European rivals. Polyurethane volumes recorded their first year-over-year decline since the first quarter of 2024 and remain approximately 5-8% below normalized levels.
KeyBanc noted that Huntsman management remains "comfortable" with the current dividend but will assess the payout quarterly given limited visibility. The research firm interpreted management comments to suggest the dividend level might be reevaluated if earnings don’t improve by early 2026.
The investment bank estimates Huntsman will generate approximately break-even free cash flow in 2026 before its $174 million dividend payment, and considers the current valuation of 12.0 times estimated 2025 EBITDA to be fair.
In other recent news, Huntsman Corporation reported its Q2 2025 earnings, which did not meet expectations. The company posted an earnings per share (EPS) of -$0.20, which was below the anticipated -$0.12. Revenue also fell short, reaching $1.46 billion compared to the forecasted $1.49 billion. These results marked a 66.67% negative surprise in EPS. Despite the disappointing earnings, there have been no reports of any changes in analyst ratings for Huntsman Corporation. The company’s stock experienced a decline following the earnings announcement. Investors and analysts continue to monitor Huntsman’s financial health closely. These developments are part of the recent updates concerning the company.
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