Trinseo (TSE – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Hassan Ahmed from Alembic Global remains neutral on the stock and has a $23.00 price target.
Hassan Ahmed’s Buy rating for Trinseo (TSE) comes as a result of a variety of factors. Despite a miss on Q3’23 EBITDA, Trinseo recorded an EPS beat, with heightened EBITDA margins in every department apart from Engineered Materials and Polystyrene. For the Q4’23, the guidance range is below consensus levels, however, Ahmed still rates the shares as Overweight with a 12-month target price of USD23 per share.
Ahmed’s optimism appears to be based on the company’s future outlook. Trinseo’s management has noted that their recent cost reduction measures and lower natural gas hedge losses are projected to result in a USD100m year-over-year profitability improvement in 2024. This is expected to facilitate the company’s ongoing investment in transformation projects like polycarbonate dissolution, which is seen to have substantial growth potential. Additionally, the year-on-year expansion of the EBITDA margins in almost all segments, except Engineered Materials and Polystyrene, adds to the positive outlook.
Ahmed covers the Basic Materials sector, focusing on stocks such as LyondellBasell, Celanese, and Methanex. According to TipRanks, Ahmed has an average return of 4.1% and a 45.59% success rate on recommended stocks.
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Trinseo (TSE) Company Description:
Trinseo SA engages in the manufacture and marketing of synthetic rubber, latex binders and plastics. It operates through the following divisions: Performance Materials and Basic Plastics & Feedstocks. The Performance Materials division includes latex binders, synthetic rubber and performance plastics segments. The Basic Plastics & Feedstocks division offers basic plastics, feedstocks and americas styrenics. The company was founded on June 3, 2010 and is headquartered in Berwyn, PA.
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