Huntsman (NYSE:HUN) on Monday was downgraded to a Sector Carry out funding score from Sector Outperform by analysts at Scotiabank. They mentioned the chemical firm’s publicity to Europe’s weakening markets is negatively affecting efficiency.
“Wanting forward, greater rates of interest within the U.S. will impression development market demand for Hunstman’s (HUN) output, whereas demand is already weak in China and Europe,” Ben Isaacson, analyst at Scotiabank, mentioned in a Nov. 7 report.
The financial institution lower its value goal for Huntsman (HUN) to $30 from $36, based mostly on a a number of seven instances estimated EBITDA for 2023.
Huntsman final week reported adjusted EPS for Q3 of $0.71, and a 3.8% decline in income from a yr earlier to $2.01 billion, consistent with Wall Avenue’s estimates.
The corporate cited financial difficulties in a few of its key markets that led to cutbacks in its product output.
“Particularly in Europe, the inflationary impression from report excessive power costs mixed with declining demand is pressuring our European amenities and margins in methods nobody anticipated,” Peter R. Huntsman, chairman, president and CEO of the corporate, mentioned in an announcement. “We imagine that stability will ultimately return, however a ‘new regular’ won’t embody favorable power costs and competitiveness the EU as soon as loved.”
Huntsmans (HUN) this yr had declined 23% by means of Nov. 4, in contrast with a 16% drop for the Commonplace & Poor’s 400 mid-cap index (SP400).