Mizuho lowers Olin stock price target to $23 on weak outlook

Published 29/07/2025, 12:22
Mizuho lowers Olin stock price target to $23 on weak outlook

Investing.com - Mizuho (NYSE:MFG) lowered its price target on Olin (NYSE:OLN) to $23.00 from $24.00 on Tuesday, while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock has declined over 35% in the past six months, though analysis suggests the company may be undervalued at current levels.

The price target reduction follows Olin’s guidance for third-quarter 2025 adjusted EBITDA with a midpoint of $190 million, below the consensus estimate of $217 million. The company provided a range of $170-210 million for the quarter. InvestingPro data reveals that 7 analysts have recently revised their earnings downward for the upcoming period, while the company maintains a 52-year streak of consistent dividend payments.

Olin reported second-quarter 2025 adjusted EBITDA of $176 million, slightly above Mizuho’s estimate of $174 million but below the Bloomberg consensus of $179 million. The company noted that the quarter included unusually high operational issues, which are expected to improve in the third quarter. The company’s financial health score from InvestingPro is rated as "FAIR," with particularly strong profitability metrics despite current challenges.

Mizuho highlighted that Olin’s Winchester commercial margins are under pressure from weak consumer demand, destocking, and an inability to pass through higher metals costs to customers.

Olin will participate in the Mizuho Industrial & Chemicals Conference in New York City on August 13, alongside 26 other firms, where investors may gain additional insights into the company’s outlook.

In other recent news, Olin Corporation reported mixed financial results for the second quarter. The company posted a net loss of $0.01 per share, falling short of analyst estimates, which anticipated earnings of $0.02 per share. However, Olin’s revenue surpassed expectations, reaching $1.76 billion, compared to the forecasted $1.66 billion. This figure represents a 7% increase from the $1.64 billion reported in the same quarter last year. Despite the revenue growth, Olin’s adjusted EBITDA experienced a notable decline to $176.1 million from $278.1 million in the previous year. The company also generated $212.3 million in operating cash flow during the quarter. These results reflect the ongoing financial dynamics within Olin Corporation.

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