Seaport Global Securities Reiterates Neutral Rating on Huntsman (HUN)

Seaport Global Securities analyst Michael Harrison reiterated a Neutral rating and {REMOVEPT} price target on Huntsman (NYSE: HUN).

The analyst comments "Q3 played out slightly worse than HUN's expectations that assumed sluggish macro demand, and there are few signs of improvement before year-end. Operationally, all three segments posted EBITDA below our model, with lower Corporate incentive comp an offset. Q4 is expected to be seasonally slower, and we have reduced our outlook in line with guidance, also modeling a slower start to 2025. HUN remains highly levered to improving demand from North American housing and in China, and we still think rate cuts and stimulus could lead to improving demand, pricing, and margins. The pace of this improvement remains uncertain, but could happen quite rapidly; patient, valueoriented investors might view the low $20 range as an interesting entry point to play eventual pickup in construction, industrial, and automotive demand. A further $50MM in cost actions (mostly in Europe) is in addition to $280MM in restructuring savings HUN has already realized, underscoring our positive view on longer-term earnings leverage. Balance sheet leverage, currently 4.0x net debt/EBITDA, should move below 3x during 2025 as EBITDA improves, setting the stage for share repurchases or bolton acquisitions. We maintain our Neutral rating given ongoing macro uncertainty, but continue to believe pieces are in place for better earnings in 2025."

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 $20.74 yesterday.

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