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Investing.com - Mizuho initiated coverage on Solstice Advanced Materials (NASDAQ:SOLSV) with a Neutral rating and a $54.00 price target, representing approximately 10% upside potential.
The research firm identified Solstice as a leading fluorochemicals producer, particularly in refrigerants, with low leverage of approximately 1.5x and no PFAS or other major liabilities.
Despite the company’s strong business fundamentals and balance sheet, Mizuho expressed concern about potential selling pressure from Honeywell shareholders receiving the distribution.
The firm also noted that Solstice’s second half 2025 pro forma adjusted EBITDA appears "unusually weak," with no specific breakdown yet provided for the September and December quarters.
While Chemours (NYSE:CC) was identified as the closest business competitor to Solstice, Mizuho suggested that Element Solutions (NYSE:ESI) should be considered the closest valuation peer.
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