Huntsman Receives Consensus Underweight Rating and Downgraded Price Targets

Summary

Huntsman Corporation (NYSE:HUN) has received a consensus recommendation of ‘Underperform’ from ten brokerages. Two analysts rated it as ‘Sell’, seven as ‘Hold’, and one as ‘Buy’. The 12-month average target price is $15.00. Recent target price downgrades include Morgan Stanley to $13.50, Bank of America to $15.00, and Citigroup to $14.00. Huntsman’s reported quarterly earnings per share were ($0.11), meeting expectations, with revenue of $1.41 billion, down 4.1% year-over-year. The company also announced a quarterly dividend of $0.25 per share, yielding 8.30%.Market Beat

Impact Analysis

This event is classified at the company level, as it specifically concerns Huntsman Corporation. The downgrades in ratings and target prices from major brokerages like Morgan Stanley, Bank of America, and Citigroup suggest a negative sentiment regarding the company’s future performance. The consistent reduction in target prices indicates concerns about the company’s profitability and market conditions. First-order effects include potential immediate downward pressure on Huntsman’s stock price as investors adjust their positions based on analysts’ opinions. Second-order effects could involve a broader reconsideration of investment in the chemical sector if similar downgrades occur for other companies. From an investment opportunity perspective, risk-averse investors might consider reducing exposure to Huntsman, while those believing in a recovery might see this as a potential entry point at lower valuations.Market Beat+ 4