On Tuesday, Mizuho Securities adjusted its price target for Element Solutions Inc (NYSE:ESI), a global specialty chemicals company, reducing it to $31.00 from the previous $32.00. Despite the price target adjustment, the firm maintained its Outperform rating for the stock.
The revision follows Element Solutions' preannouncement in early June, which was discussed in-depth ahead of a tech conference hosted by Morgan Stanley USA. The company reported that its EBITDA for the second quarter of 2024 increased by 16% year-over-year, or 21% on a constant currency basis. Additionally, Element Solutions provided guidance indicating a 9% midpoint increase in EBITDA for the second half of 2024.
The company's financial results seem to have been influenced by currency fluctuations in Asia, which, while moderating slightly in the June quarter, still pose a modest risk to the second half of the year's outcomes.
The analyst noted the industry's broader challenges, pointing to a stagnation in the automotive OEM and durables sectors, which align with trends observed in the industrial coatings and durable plastics segments of other companies such as PPG Industries (NYSE:PPG), RPM International (NYSE:RPM), and Eastman Chemical Company (NYSE:EMN).
Furthermore, the analyst highlighted the upcoming participation of the Chief Financial Officer of Entegris (NASDAQ:ENTG), a peer company, at the Morgan Stanley USA Industrials & Materials Conference scheduled for August 14 in New York City. This event may provide further insights into the industry's current dynamics and future prospects.
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