Mizuho lowers Ashland stock price target to $58 on weaker EBITDA

Published 30/07/2025, 17:34
Mizuho lowers Ashland stock price target to $58 on weaker EBITDA

Investing.com - Mizuho (NYSE:MFG) lowered its price target on Ashland Inc . (NYSE:ASH) to $58.00 from $60.00 on Wednesday, while maintaining its rating on the specialty chemicals company. The stock, currently trading at $53.49, has declined nearly 29% year-to-date, though InvestingPro analysis suggests the company is currently undervalued.

The price target reduction follows Ashland’s June quarter adjusted EBITDA of $113 million, which fell 10% year-over-year on an organic basis. This result came in below Mizuho’s estimate of $117 million and the consensus expectation of $114 million. The company’s trailing twelve-month EBITDA stands at $408 million, with revenue showing a 7.7% decline over the same period.

The company reported 4% lower organic volume for the quarter, while pricing appeared stable quarter-over-quarter but was down 2% compared to the same period last year.

Mizuho noted that Ashland’s implied September quarter EBITDA guidance midpoint stands at $123 million, slightly above both Mizuho’s and Bloomberg consensus estimates of $120 million.

Ashland’s Chief Financial Officer will participate in the upcoming Mizuho Industrial & Chemicals Conference in New York City on August 13, alongside representatives from 26 other firms.

In other recent news, Ashland Inc. has announced several significant developments. The company has appointed William C. Whitaker as its new senior vice president and chief financial officer, effective July 18, 2025. Whitaker has been with Ashland since 2015, serving in various roles, including interim CFO. Additionally, Ashland is undergoing a leadership change in its operations department as Karl Bostaph, the senior vice president of operations, will retire on October 1, 2025. Wayne Muil has been appointed to take over the role, having previously served as the global director of operations for specialty additives.

In a strategic move, Ashland will close two manufacturing facilities in New Jersey as part of a $60 million optimization plan. The production of hydroxyethyl cellulose will be transferred to Hopewell, Virginia, and microbial protection production will move to Freetown, Massachusetts. Meanwhile, JPMorgan has maintained its Overweight rating for Ashland, keeping the stock price target at $67. However, the firm noted that consensus estimates for Ashland’s third-quarter earnings might be slightly optimistic, with their EBITDA estimate at $112 million, below the consensus of $117.5 million.

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