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Investing.com - KeyBanc Capital Markets raised its price target on Element Solutions (NYSE:ESI) to $34.00 from $32.00 on Thursday, while maintaining an Overweight rating on the specialty chemicals company. The new target represents a 30% upside from the current price of $26.04, aligning with the overall analyst consensus that shows a "Strong Buy" recommendation.
The firm cited Element Solutions’ continued delivery of healthy results, driven primarily by strong growth in its Electronics segment, despite softness in the Industrial division. KeyBanc noted that demand for materials used in leading-edge semiconductors remains robust, particularly in high-performance computing, data centers, and artificial intelligence applications. This performance is reflected in the company’s solid 41.8% gross profit margin and its perfect Piotroski Score of 9, according to InvestingPro data, indicating exceptional financial strength.
KeyBanc believes the current destocking in power semiconductor materials is transitory, projecting this business segment will resume growth over the next few quarters. The price target increase reflects KeyBanc’s stronger earnings forecast for the company. This optimism is supported by Element Solutions’ impressive 30.4% price return over the past six months, suggesting investors are already anticipating this recovery.
The investment firm views most of Element Solutions’ organic growth as being driven by secular themes, while noting that the overall business cycle remains soft. This assessment supports KeyBanc’s decision to maintain its Overweight rating on the stock. InvestingPro data shows the company trades at a P/E ratio of 26.5, which is relatively high compared to near-term earnings growth expectations.
Element Solutions provides specialty chemicals and technical services used in electronics, industrial, and consumer markets, with its products playing a key role in semiconductor manufacturing processes. The company maintains excellent financial stability with a Current Ratio of 4.1, meaning its liquid assets far exceed short-term obligations. InvestingPro rates Element Solutions’ overall financial health as "GREAT" with a score of 3.05, making it one of 1,400+ US equities covered by comprehensive Pro Research Reports that transform complex Wall Street data into actionable intelligence.
In other recent news, Element Solutions Inc reported its Q3 2025 earnings, surpassing both earnings per share (EPS) and revenue expectations. The company achieved an EPS of $0.41, slightly above the projected $0.40, representing a 2.5% surprise. Revenue figures were also strong, reaching $656.1 million, which exceeded the anticipated $646.82 million by 1.43%. These results highlight a positive financial performance for the quarter. Despite the favorable earnings report, Element Solutions’ stock experienced a decline in premarket trading, indicating mixed reactions from investors. The company’s financial results have been a focal point for analysts and investors alike. Element Solutions continues to attract attention with its performance metrics. These developments are part of the company’s ongoing financial narrative.
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