Huntsman (HUN) Stock Forecast & Price Target

Huntsman Corporation, a leading manufacturer of differentiated organic chemical products, is well-positioned for growth due to the anticipated expansion in global MDI capacity, which is projected to increase by 11.4% over the next three years, positively impacting feedstock availability. The company's strategic focus on its Polyurethanes segment, particularly its differentiated MDI business, positions it to capitalize on margin growth opportunities as the construction and automotive sectors recover. Furthermore, Huntsman’s successful repositioning of its asset base and balance sheet, along with expectations for stable fundamentals in key end markets, support a positive outlook for its future financial performance.

Huntsman Corporation has reduced its fourth-quarter 2023 adjusted EBITDA outlook from a range of $65-90 million to $40-45 million, primarily driven by ongoing challenges within the Polyurethanes segment, which includes impacts from an unplanned facility outage in Rotterdam. This revision has led to a downward adjustment in EBITDA estimates for 4Q23, FY24, and FY25, reflecting broader economic weaknesses, particularly in caustic pricing and ECU margins, compounded by raw material inflation. Additionally, Huntsman faces significant volume headwinds in its Polyurethanes and Advanced Materials segments, exacerbated by its heavy reliance on the construction market and increased exposure to European markets.