Alembic Global analyst Hassan Ahmed maintained a Buy rating on Olin (OLN – Research Report) today and set a price target of $60.00.
Hassan Ahmed’s rating is based on Olin Corporation’s strong performance in the fourth quarter and the promising outlook for the fiscal year 2024. Despite a challenging global economic climate, Olin surpassed expectations in the last quarter of 2023, particularly in the Chemicals Performance Products and Solutions (CAPV) unit, contributing to a robust earnings report. Ahmed also acknowledges Olin’s optimistic earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast for the entire fiscal year, which is projected to exceed the previous year’s results and outpace current consensus estimates.
Furthermore, Ahmed’s Buy rating is bolstered by the anticipated sequential improvement in Olin’s business segments, especially the Winchester segment, which showed significant year-over-year growth thanks to increased commercial and military sales. With these results and the projected 10% EBITDA growth from Q4 2023 to Q1 2024, Ahmed expects Olin shares to experience an uptick. These factors, combined with the projected higher-than-consensus EBITDA for the full year, contribute to Ahmed’s favorable view and his target price of USD 60 for Olin stock.
In another report released on January 12, RBC Capital also maintained a Buy rating on the stock with a $58.00 price target.
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Olin (OLN) Company Description:
Olin Corp. engages in manufacturing of chemicals products. It operates through the following segments: Chlor Alkali Products and Vinyls, Epoxy, and Winchester. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. . The Epoxy segment produces and sells epoxy materials, which includes allyl chloride, epichlorohydrin, liquid epoxy resins and downstream products such as converted epoxy resins and additives. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. The company was founded by Franklin W. Olin in 1892 and is headquartered in Clayton, MO.
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