Stepan Company (SCL) PT Lowered to $93 at Stifel

Stifel analyst Vicent Anderson lowered the price target on Stepan Company (NYSE: SCL) to $93.00 (from $95.00) while maintaining a Buy rating.

The analyst commented, "We are lowering estimates incrementally for Stepan through 2024, but with increased conviction in a solid 2024 earnings recovery despite a tepid macro outlook. Agriculture mix impact on margins was more severe than we anticipated, pointing to solid upside when it recovers, though we note that Stepan's lead/lag to normal industry purchasing patterns moves our expected mix recovery out ~2 quarters from prior expectations. We continue to expect lower raw material prices to provide solid margin recovery in 2024, as well as the company's $50 mn cost-savings initiative. We maintain our Buy rating despite more conservative 2024 estimates on a de-risked valuation, aided by the expected step-down in 2024 capex spending."

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