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Ashland Global Holdings (NYSE:ASH) late Wednesday was upgraded to Overweight from a previous investment rating of Equal Weight by analysts at financial-services firm Wells Fargo.
They said the maker of specialty materials additives is poised for gains as its profit grows faster than previously estimated.
“We see compelling evidence from the second half of fiscal 2024 that its earnings run rate is ramping up supporting stronger ebitda growth into fiscal 2025,” Michael Sison, analyst at Wells Fargo, said in an April 10 report.
The bank raised its price target on Ashland (ASH) to $112 a share from $100 previously, based on an estimated enterprise value that’s about 11.5 times adjusted earnings before interest, taxes, depreciation and amortization for 2024.
“Ashland (ASH) is well positioned to drive above-market growth with a more streamlined portfolio of businesses leveraged to consumer and longer-term mega trends including sustainability, with help from successful pricing actions, technology innovation projects and strong balance sheet to drive additional M&A growth,” according to Wells Fargo.