Wells Fargo analyst Michael Sison maintained a Hold rating on Ashland (ASH – Research Report) yesterday and set a price target of $80.00.
Geoff Meacham has given his Hold rating due to a combination of factors involving Ashland’s financial performance and future outlook. In the first quarter of fiscal year 2024, Ashland beat earnings expectations with an adjusted EBITDA margin that was significantly higher than estimated, indicating a stronger performance than analysts had predicted. Additionally, Ashland’s guidance for both the second quarter and the full fiscal year 2024 surpassed previous expectations, suggesting an improving trend in sales and margins.
Despite the positive outlook on EBITDA and sales, the Hold rating may also reflect Ashland’s year-over-year declines and the cautious approach the company took by initially refraining from providing full-year guidance due to uncertainty. Furthermore, Ashland’s ongoing portfolio optimization actions, such as consolidating production capacities and closing facilities, indicate that the company is still in the process of streamlining operations, which could have long-term benefits but may also involve short-term risks and uncertainties.
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Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ASH in relation to earlier this year.
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Ashland (ASH) Company Description:
Ashland Global Holdings, Inc. is a global specialty chemicals company. The company engages in the manufacture and distribution of adhesives, architectural coatings, automotive, construction, energy, food and beverage, personal care, and pharmaceutical. It operates through the following segments: Specialty Ingredients, and Intermediates and Solvents. The Specialty Ingredients segment offers industry products, technologies, and resources for solving formulation and product-performance challenges. The Intermediates and Solvents segment produces butanediol and related derivatives, including tetrahydrofuran and n-methylpyrrolidone. The company was founded in 1924 and is headquartered in Covington. KY.
Read More on ASH:
- Ashland to Release Regulatory Disclosure on Investor Site
- Ashland reports financial results1 for first quarter fiscal 2024; issues outlook for second quarter and full-year fiscal 2024
- Ashland Annual Meeting Results: Directors Elected, Accountants Ratified
- Ashland board authorizes quarterly dividend
- Ashland sets date for fiscal 2024 first-quarter earnings release and conference call webcast
