Wells Fargo Starts Huntsman (HUN) at Outperform, Well Better Positioned Than 5 Years Ago
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Price: $10.21 +0.49%
Rating Summary:
8 Buy, 17 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
8 Buy, 17 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Wells Fargo initiates coverage on shares of Huntsman (NYSE: HUN) with an Outperform and valuation range of $16-$18.
The firm notes that HUNs has dramatically upgraded its portfolio mix and balance sheet in the past five years. U.S. and Europe sales only account for 62 percent of total sales where it use to account for 82 percent. The company's net debt has also been cut in half to $3.5 billion. In the past, half of the company's sales specialty, and now differentiated products now make up 88 percent.
Wells Fargo sees the potential for an additional $1.25 in earnings per share from its attractive product mix and product performance.
An analyst at the firm comments, "As raws and business conditions stabilize, we should see better cash flow generation and further debt paydown. A potential recovery in Europe and housing also present tailwinds. At only 4.6x EV-to-EBITDA on our 2012 forecast, the shares are trading well below the historical average, with a yield of 3.4% to boot."
Wells Fargo's current 2011 and 2012 EPS estimates are $1.70 and $1.90. The firm's revenue estimates for the two years are $11.17 billion and $11.8 billion.
For more ratings news on Huntsman click here and for the rating history of Huntsman click here.
Shares of Huntsman closed at $11.50 yesterday.
The firm notes that HUNs has dramatically upgraded its portfolio mix and balance sheet in the past five years. U.S. and Europe sales only account for 62 percent of total sales where it use to account for 82 percent. The company's net debt has also been cut in half to $3.5 billion. In the past, half of the company's sales specialty, and now differentiated products now make up 88 percent.
Wells Fargo sees the potential for an additional $1.25 in earnings per share from its attractive product mix and product performance.
An analyst at the firm comments, "As raws and business conditions stabilize, we should see better cash flow generation and further debt paydown. A potential recovery in Europe and housing also present tailwinds. At only 4.6x EV-to-EBITDA on our 2012 forecast, the shares are trading well below the historical average, with a yield of 3.4% to boot."
Wells Fargo's current 2011 and 2012 EPS estimates are $1.70 and $1.90. The firm's revenue estimates for the two years are $11.17 billion and $11.8 billion.
For more ratings news on Huntsman click here and for the rating history of Huntsman click here.
Shares of Huntsman closed at $11.50 yesterday.
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