
Olin (OLN) Stock Forecast & Price Target
Olin (OLN) Analyst Ratings
Bulls say
Olin Corp reported a robust 8% year-over-year increase in sales for the third quarter, totaling $1.71 billion, driven by a notable 23% rise in Epoxy segment sales. The company anticipates an improvement in average realized caustic soda prices in the fourth quarter due to tightening supply and stable demand conditions. With an increased run-rate savings target now set at $70 million to $90 million, Olin is positioning itself for stronger earnings potential while adopting a "value over volume" strategy, which may provide a competitive advantage as market demand recovers.
Bears say
Olin Corporation's outlook is negatively affected by anticipated earnings declines driven by the company's strategy to reduce inventories, which is expected to decrease earnings by approximately $40 million in the fourth quarter while providing a working capital benefit of about $150 million. The company has reported a significant 24% year-over-year drop in commercial Winchester sales, attributed to elevated inventory levels at retail customers and ongoing weak consumer demand, indicating persistent challenges in the ammunition segment. Additionally, there are concerns regarding the potential oversupply in the caustic soda market, especially if industrial demand declines further, compounded by the risks of a prolonged recession in Europe impacting profitability in other segments like EDC and epoxy.
This aggregate rating is based on analysts' research of Olin and is not a guaranteed prediction by Public.com or investment advice.
Olin (OLN) Analyst Forecast & Price Prediction
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