BofA Securities Resumes Element Solutions (ESI) at Buy

BofA Securities analyst Matthew DeYoe resumes coverage on Element Solutions (NYSE: ESI) with a Buy rating and a price target of $42.00.

The analyst comments "We resume coverage of ESI with a Buy-rating following the termination of the Solstice (SOLS) merger agreement. With the deal off, discussions shift back to fundamentals, where results remain strong. Recapping 2Q, ESI posted adjusted EBITDA of $184mn (+35% y-y), well above consensus (~$167mn), driven by Electronics, where organic sales grew 20% and adj EBITDA rose 47%. Total net sales rose 56% with +15% coming from organic initiatives. Importantly, we think this organic growth has legs as the AI buildout gets supplemented by expansions at Kuprion. With high-teens EPS growth likely over the next two years, we see reason for equity outperformance."

For an analyst ratings summary and ratings history on Element Solutions click here. For more ratings news on Element Solutions click here.

Shares of Element Solutions closed at $35.54 yesterday.

You May Also Be Interested In

• Designer Brands (DBI) PT Lowered to $6 at UBS
• Callaway Golf (CALY) PT Raised to $20 at Truist Securities
• DA Davidson Reiterates Underperform Rating on c3.ai (AI)