Orion Engineered Carbons stock hits 52-week low at $13.3

Orion Engineered Carbons SARL (NYSE:OEC) stock has reached a 52-week low, trading at $13.3, marking a significant downturn for the company within the past year. According to InvestingPro analysis, the stock appears undervalued at current levels, with analysts setting price targets between $17 and $24. This latest price level reflects a stark contrast to the stock’s performance over the past 12 months, with OEC experiencing a substantial 1-year change of -40.44%. Despite the decline, InvestingPro data reveals management’s confidence through aggressive share buybacks, and analysts expect net income growth this year. Investors are closely monitoring the company’s performance, as this new low point could signal both challenges and potential opportunities for value-seeking shareholders. The market is now keenly awaiting the company’s next move to address this downturn and revitalize investor confidence. Get the full picture with InvestingPro’s comprehensive research report, featuring detailed analysis of OEC’s financial health and growth prospects.

In other recent news, Orion Engineered Carbons S.A. has announced several key developments. The company entered a long-term supply agreement with Contec S.A. to produce sustainable carbon black using tire pyrolysis oil from recycled tires. This partnership aims to meet the growing demand for environmentally friendly materials in the tire and rubber industries. Meanwhile, Mizuho (NYSE:MFG) Securities has adjusted its outlook on Orion, lowering the price target from $18.00 to $17.00 while maintaining a Neutral rating. This change follows Orion’s expectation of lower adjusted EBITDA for the December quarter of 2024, influenced by weaker volumes, foreign exchange impacts, and one-time costs.

Jefferies analysts also revised their price target for Orion from $26.00 to $24.00, though they continue to hold a Buy rating. This adjustment comes as Orion projects its 2024 EBITDA to fall slightly below initial forecasts, citing challenges such as foreign exchange issues and weaker demand trends. The company anticipates modest growth for 2025, with ongoing destocking activities in tire markets expected to impact sales volumes. These recent developments highlight the various headwinds facing Orion Engineered Carbons while also emphasizing its commitment to sustainable practices.

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