Huntsman (HUN) PT Cut to $28 at Nomura Securities

Nomura Securities analyst Aleksey Yefremov lowered his price target on Huntsman (NYSE: HUN) to $28.00 (from $30.00) but maintained a Buy rating, saying valuation is attractive.

Yefremov commented, "HUN shares dropped 6.5% on Feb 18 following earnings (vs. S&P 500 down 0.03%), as management scaled back expectations for margin expansion in polyurethanes in 2015. Overall, at 6.9x 2015E EV/EBITDA, we find HUN shares attractive even without meaningful margin expansion in Polyurethanes. We lower our estimates and target to reflect more conservative margins in PU and recent deterioration in TiO2. We lower our 2015 EPS estimate by $0.65 to $2.10, and 2016 by $0.48 to $2.81 to account for a lower MDI price outlook. We also lower our target price by $2 to $28 based on our SOTP valuation."

FY14E EPS at $1.94; FY15E at $2.10.

For an analyst ratings summary and ratings history on Huntsman click here. For more ratings news on Huntsman click here.

Shares of Huntsman closed at $22.63 yesterday.

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