logo
  Join        Login             Stock Quote

Huntsman (HUN) Lowered To 'Neutral' By UBS, PT Raised

 January 10, 2013 02:50 PM
 


(By Balachander) Huntsman Corp. (NYSE: HUN) shares were lowered to "neutral" From "buy" by UBS based on view that the company's stock price has now approached fair valuation.

"The current excess return of negative 3% versus our $18 target price is consistent with a Neutral rating for the stock," the brokerage said. "We are increasing our target price to reflect an updated estimate of normal earnings to $1.70/sh from $1.50/sh." UBS increased target $2 on higher normalized EPS.

UBS expects the Polyurethane segment to report about $180 million in EBITDA, in 4Q, down from $239 million reported in the 3Q on seasonally weaker MTBE margins.

[Related -Huntsman Corporation (HUN): Needs A Perfect Trip To Hit Goldman’S $29]

The brokerage anticipates that EBIT margins for MDI will be down only slightly from 3Q levels and will be near $0.355/lb.

UBS reduced its 2012 EPS to $2.23 from $2.35 and 2013 EPS estimate to $1.90 from $2.05 on lower earnings expectations for Pigments.

"Our prior assumption was that TiO2 prices would be down $0.10/lb in 4Q, but it appears that actual prices were down $0.20/lb," the brokerage said. "We do not anticipate a recovery in the soft market conditions for TiO2 until the third quarter of 2013 at the earliest."

Huntsman is a manufacturer of differentiated chemicals. Its operating companies manufacture products for industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, among others.

The stock, which has been trading in the 52-week range of $10.13 to $18.29, traded 1.43 percent lower at $17.92 on Thursday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChina's Cunning Plan To Revive Growth

By now, we all know the story of China's troubles. China achieved its stunning growth through a combination read on...

article imageA Mild Improvement For The US Macro Trend In May… So Far

How’s that second-quarter rebound working out for the US? It’s still a shaky affair, but there are signs read on...

article imageThe Future Of Banking Is Now On Sale

The initial public offering class of 2014 was surely an elite group. 275 companies raised a combined $85 read on...

article imageTextbook Arc Rounded Reversal for High Flying Airlines

A beautiful chart pattern played out on two airline stocks – Southwest and United read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

Our Two Heavy Metal Picks: Cat And Deere
More Articles on: Basic Materials



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.