- RBC Capital analyst Arun Viswanathan raised the price target for Huntsman Corp (NYSE:HUN) to $43 (an upside of 45%) from $39 while maintaining the Outperform rating on the shares.
- With the sale of its underperforming textile business, the analyst believes HUN’s target valuation multiple should be higher.
- The company recently entered into a definitive agreement to sell its Textile Effects division to Archroma, a portfolio company of SK Capital Partners, for $718 million. The transaction is expected to close in 1H23.
- Viswanathan says that given the stock’s weak reaction to this news, he believes investors continue to be worried about recession impacts on construction and MDI demand.
- The analyst argues that HUN will enter this recession with more cash, and every 0.5x EBITDA adds ~$3-4 to the stock.
- Price Action: HUN shares closed higher by 2.20% at $29.71 on Thursday.
HanesBrands Q2 Outlook: Adj. EPS $0.07-$0.11 Vs. $0.10 Estimate, Sales $1.335B-$1.375B Vs. $1.345B Estimate
For second-quarter 2024, which ends on June 29, 2024, the Company currently expects:
Net sales of approximately $1.335 billion to $1.375 billion, which includes projected headwinds of approximately $13.5 million from
