Element Solutions (ESI) PT Raised to $31 at Wolfe Research

Wolfe Research analyst Chris Parkinson raised the price target on Element Solutions (NYSE: ESI) to $31.00 (from $30.00) while maintaining a Outperform rating.

The analyst comments "Organic Growth Outlook + Portfolio Enrichment to Support Solid #'s: We attribute ESI's +4% reaction (XLB -1.2%) to CC comments which made it clear that fundamentals are at worst status quo, while new biz wins are prevalent throughout the portfolio. The low end of EBITDA guidance appears to contemplate incremental Industrial weakness / tariff escalation, while any degree of macro "help" should drive ESI towards the higher end. Our Take: Rhetoric is consistent w/ our view that emerging growth vectors are driving solid performance in mix-accretive areas of the portfolio. We continue to model MSD + organic rev growth at nearly ~40% incremental margins - which drives our EBITDA est. >$600mm in '26. Adjusting for the Graphics divestiture / FX, ESI is building a strong track record re: outperforming underlying Electronics markets. The fact it is doing so without robust activity from non-Chinese auto / smartphone OEMs lends credibility to the notion that ESI is not yet fully reflecting its true earnings power under "normal" mkt conditions."

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