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On Tuesday, Mizuho has adjusted its stock price target for Huntsman Corporation (NYSE:HUN), a global manufacturer of differentiated chemicals, to $23.00, decreasing from the previous target of $24.00. The firm has chosen to maintain a Neutral rating on the stock.
The revision follows the company's recent financial update, where Huntsman reported a year-over-year decline in adjusted EBITDA for the June quarter of 2024. Despite a 9% increase in volume, the adjusted EBITDA came in at $131 million, which was slightly below the Morgan Stanley USA estimate of $132 million but above the consensus estimate of $129 million.
The company's performance in the June quarter saw volume growth across all segments, yet the adjusted EBITDA fell by 16% compared to the same quarter the previous year. Looking forward, the Huntsman CEO expressed an expectation of favorable growth comparisons in the second half of 2024, despite not anticipating significant changes in global economic activity.
Huntsman has also provided guidance for the September quarter of 2024, with an adjusted EBITDA midpoint of $130 million. This figure falls short of both the Morgan Stanley USA estimate of $167 million and the Bloomberg consensus of $146 million, indicating a more cautious outlook than what analysts had anticipated.
In addition to these financial updates, Huntsman's Chief Financial Officer is scheduled to participate in the upcoming Mizuho Industrial & Chemical Conference on August 14, 2024. The conference will feature a lineup of 14 other chemical firms and a range of industrial companies, providing a platform for industry leaders to discuss market conditions and corporate strategies.
In other recent news, Huntsman Corporation has been a focus in the financial sector, with several key developments. JPMorgan upgraded Huntsman stock from Neutral to Overweight and raised the price target to $27, indicating potential for above-average capital appreciation.
On the contrary, Deutsche Bank reduced the stock's price target to $27, maintaining a hold rating due to only modest signs of improvement in the construction sector. RBC Capital Markets also adjusted their outlook, raising Huntsman's price target from $24 to $26 based on an improved EBITDA outlook.
BofA Securities slightly reduced the price target to $29 but kept a buy rating on recovery prospects. In terms of financial developments, Huntsman Corporation announced a cash dividend of $0.25 per share for its common stock, reflecting confidence in the company's financial stability and cash flow. The company reported revenues of approximately $6 billion for the year 2023.
These recent developments indicate a mixed sentiment among analysts, with some seeing potential for growth and others maintaining a more cautious stance. As always, investors are advised to consider these factors in light of their own investment strategies and risk tolerance.
InvestingPro Insights
As Huntsman Corporation (NYSE:HUN) navigates through a challenging economic landscape, the latest data from InvestingPro provides a deeper understanding of the company's financial health. With a market capitalization of $3.72 billion, Huntsman is trading at a high EBIT valuation multiple, despite a -19.66% decline in revenue over the last twelve months as of Q1 2024. The company's gross profit margin stands at 14.03%, reflecting the efficiency of its operations amidst the revenue downturn.
InvestingPro Tips highlight that Huntsman has maintained its dividend payments for 18 consecutive years, with a notable dividend yield of 4.66%. This commitment to returning value to shareholders is especially significant as the company trades near its 52-week low.
Analysts remain cautiously optimistic, expecting net income growth this year, which could signal a turnaround from the past twelve months where the company was not profitable. Moreover, there are additional insights available on InvestingPro, including a total of 10 InvestingPro Tips for Huntsman Corporation, which provide a comprehensive analysis for investors considering this stock.
Investors may also take note of the company's stock performance, which has seen a significant decline over the past week, with a one-week price total return of -10.01%. As Huntsman approaches its next earnings date on August 5, 2024, the market will be watching closely to see if the company can achieve the profitability that analysts predict for this year.
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