Piper Sandler raises AdvanSix stock rating, lifts target to $32

Published 19/05/2025, 10:30
Piper Sandler raises AdvanSix stock rating, lifts target to $32

On Monday, Piper Sandler demonstrated a positive outlook on AdvanSix (NYSE:ASIX) by upgrading the stock from Neutral to Overweight and raising the price target to $32 from $26. According to InvestingPro analysis, the company, currently valued at $630 million with annual revenue of $1.56 billion, appears undervalued based on its Fair Value metrics. This aligns with the stock’s attractive valuation multiples, trading at a P/E ratio of 7.4x and EV/EBITDA of 5.3x. The research firm’s decision reflects an optimistic view of the company’s ammonium sulfate business and its ability to maintain earnings resilience. The firm noted that the impact of tariffs on AdvanSix’s nylon, nylon intermediate, and chemical intermediate businesses is relatively small, which contributes to the company’s robust earnings compared to other chemical stocks. InvestingPro data supports this view, showing the company has maintained profitability over the last twelve months and is expected to grow its net income this year.

The upgrade comes as Piper Sandler acknowledges the strength of AdvanSix’s core business segments. "We are upgrading ASIX shares to Overweight from Neutral to reflect the earnings benefit of the ammonium sulfate business as well as the relatively small impact of tariffs and the nylon, nylon intermediate and chemical intermediate businesses," said the Piper Sandler analyst.

AdvanSix’s ammonium sulfate business, which is a key driver for the upgrade, is anticipated to continue to benefit the company’s earnings. This performance is seen as a differentiator, especially when considering the broader chemical sector where other companies may not be holding up as well.

The analyst’s remarks underscore the expectation that AdvanSix’s earnings will outperform those of many other chemical companies. This perspective is based on the current assessment of the company’s business operations and market conditions.

With this upgrade, Piper Sandler signals its confidence in AdvanSix’s ability to navigate the market challenges and capitalize on its business strengths. The new price target of $32 represents a significant increase from the previous $26, suggesting a favorable outlook for AdvanSix’s stock performance in the near term. Discover more insights about ASIX and 1,400+ other stocks through comprehensive Pro Research Reports, available exclusively on InvestingPro, which transform complex Wall Street data into actionable intelligence.

In other recent news, AdvanSix reported impressive financial results for the first quarter of 2025, surpassing expectations. The company achieved earnings per share (EPS) of $0.93, exceeding the forecast of $0.87. Revenue also topped projections, reaching $378 million compared to the anticipated $367 million. AdvanSix’s adjusted EBITDA margin improved to 13.7%, and while free cash flow remained negative, it showed significant year-over-year improvement. The company noted a 12% increase in sales, driven by higher sales volume and market-based pricing. Analysts have taken note of these developments, with some firms likely considering the strong performance in their evaluations. AdvanSix continues to focus on cost and cash management, with capital expenditure for 2025 forecasted between $145 million and $155 million. The company is also monitoring potential demand impacts across various end markets as it navigates ongoing macroeconomic challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.