Ashland’s Strong Performance and Positive Outlook Merit Buy Rating and Raised Price Target

In a report released on April 30, John Roberts CFA from Mizuho Securities maintained a Buy rating on Ashland (ASH – Research Report), with a price target of $110.00.

John Roberts CFA has given his Buy rating due to a combination of factors including Ashland’s solid performance and favorable outlook. The company’s adjusted EBITDA for the March quarter, despite a year-over-year decline, still managed to surpass the Mizuho Securities USA estimate and the Bloomberg consensus, thanks to a moderate increase in volume and a beneficial product mix. Moreover, Ashland’s earnings per share for the same quarter exceeded expectations, indicating a robust profitability that underpins the positive sentiment towards the stock.
Additionally, John Roberts CFA’s confidence in Ashland is reflected in the increased price target, raising it from $101 to $110, based on enhanced earnings projections and multiple expansions. The revised price target is supported by a projected rise in the next twelve-month plus one (NTM+1) earnings per share to $6.20, which represents an attractive price-to-earnings ratio of approximately 18.0 times, slightly below the historical median relative to the S&P Materials Index. These financial metrics, alongside the anticipated participation of Ashland in the upcoming Mizuho Securities Bus Tour, provide a compelling case for the Buy rating ascribed to ASH.

According to TipRanks, Roberts CFA is a 4-star analyst with an average return of 5.5% and a 60.00% success rate. Roberts CFA covers the Basic Materials sector, focusing on stocks such as Ecolab, Linde, and Air Products and Chemicals.

In another report released yesterday, Seaport Global also maintained a Buy rating on the stock with a $115.00 price target.

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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.