Oiln (OLN) PT Lowered to $64 at Citi

Citi analyst Patrick Cunningham lowered the price target on Oiln (NYSE: OLN) to $64.00 (from $67.00) while maintaining a Buy rating.

The analyst commented, "Our three takeaways from last week’s call: 1) FY24 EBITDA of ~>$1.3bn will likely be supported by continued price/volume momentum in CAPV. OLN expects 1Q24 CAPV pricing to improve sequentially and sees continued positive momentum continuing into 2H24. CAPV volume recovery is expected to be more pronounced than price and OLN highlighted they will not be pushing volume into the market but will instead adjust operating rates to account for seasonal volume step-up. Improved chlorine volumes across various end markets include agriculture, urethanes, TiO2 and water treatment. 2) OLN noted the FY23 epoxy restructuring activity will likely drive sequential improvement in 2Q24 with an optimized footprint as it scales high margin business. 3) Management cited risk to Winchester from propellant shortage and is working to mitigate by securing additional volumes. The segment is expected flat sequentially but anticipated to better results in 2H24 with strong international military demand."

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