J.P. Morgan Downgrades Huntsman to Neutral Amid Economic Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy HUN?
Source: seekingalpha
- Rating Downgrade Impact: J.P. Morgan downgraded Huntsman (HUN) from Overweight to Neutral with a $14 price target, indicating that the current share price reasonably reflects a significant recovery in EBITDA, resulting in a 4.2% drop in Thursday's trading.
- Market Challenge Analysis: Analyst Jeffrey Zekauskas noted that Huntsman's polyurethane business, which accounts for over 50% of its EBITDA, faces challenges in construction markets due to rising interest rates, supply additions, and slower global economic growth.
- Economic Outlook: Although Zekauskas previously believed that business conditions would hit a trough in 2023-24, he now sees 2025 as being challenged by increased economic and tariff uncertainties, pushing Huntsman's recovery outlook to 2026.
- Growth Potential Assessment: Huntsman's value typically rises sharply in environments of declining interest rates and accelerating economic activity, and the analyst suggests that there is potential for price and volume gains if domestic economic growth accelerates.
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Analyst Views on HUN
Wall Street analysts forecast HUN stock price to fall
10 Analyst Rating
2 Buy
5 Hold
3 Sell
Hold
Current: 12.690
Low
8.00
Averages
9.78
High
11.00
Current: 12.690
Low
8.00
Averages
9.78
High
11.00
About HUN
Huntsman Corporation is a manufacturer of diversified organic chemical products. It operates through three segments: Polyurethanes, Performance Products and Advanced Materials. The Polyurethanes product segment includes methylene diphenyl diisocyanate, polyols, and thermoplastic polyurethane products. The Performance Products segment is engaged in the manufacturing and sale of amines and maleic anhydride and serves a variety of consumer and industrial end markets. Its Advanced Materials segment includes technologically advanced epoxy, phenoxy, acrylic, polyurethane, mercaptan and acrylonitrile butadiene-based polymer products as well as carbon nanomaterials. Its products comprise different chemicals and chemical formulations, which it markets globally to a wide range of consumers that consist primarily of industrial and building product manufacturers. Its products are used in a range of applications, including adhesives, aerospace, automotive, coatings and construction, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
J.P. Morgan Downgrades Huntsman to Neutral Amid Economic Concerns
- Rating Downgrade Impact: J.P. Morgan downgraded Huntsman (HUN) from Overweight to Neutral with a $14 price target, indicating that the current share price reasonably reflects a significant recovery in EBITDA, resulting in a 4.2% drop in Thursday's trading.
- Market Challenge Analysis: Analyst Jeffrey Zekauskas noted that Huntsman's polyurethane business, which accounts for over 50% of its EBITDA, faces challenges in construction markets due to rising interest rates, supply additions, and slower global economic growth.
- Economic Outlook: Although Zekauskas previously believed that business conditions would hit a trough in 2023-24, he now sees 2025 as being challenged by increased economic and tariff uncertainties, pushing Huntsman's recovery outlook to 2026.
- Growth Potential Assessment: Huntsman's value typically rises sharply in environments of declining interest rates and accelerating economic activity, and the analyst suggests that there is potential for price and volume gains if domestic economic growth accelerates.
See More
Huntsman (HUN) Q4 2025 Earnings Call Transcript
See More
Huntsman Q4 2025 Earnings Report Analysis
- Earnings Performance: Huntsman's Q4 2025 non-GAAP EPS of -$0.37 missed expectations by $0.06, indicating pressure on profitability that could affect investor confidence.
- Revenue Insights: The quarter's revenue of $1.36 billion exceeded market expectations by $20 million, suggesting a relatively stable sales performance despite the decline in overall profitability.
- Cash Flow and Capital Expenditure: Free cash flow for Q4 2025 was $20 million, a significant drop from $108 million in the same period of 2024, reflecting cash flow pressures in operations, while capital expenditures increased from $51 million to $57 million, indicating ongoing commitment to future investments.
- Liquidity Position: As of December 31, 2025, Huntsman had approximately $1.3 billion in cash and unused borrowing capacity, maintaining strong liquidity despite reduced cash flow, which will help navigate future uncertainties.
See More
Huntsman Declares Cash Dividend and Annual Meeting
- Cash Dividend Announcement: Huntsman's Board of Directors has declared a cash dividend of $0.0875 per share, payable on March 31, 2026, which is expected to provide stable returns to shareholders and enhance investor confidence.
- Annual Meeting Details: The 2026 Annual Meeting of Stockholders will be held virtually on April 29, 2026, requiring shareholders to register by March 6, 2026, ensuring their participation in voting and reflecting the company's commitment to shareholder rights.
- Financial Overview: Huntsman reported approximately $6 billion in revenue for 2025, indicating strong performance in the specialty chemicals market and further solidifying its competitive position globally.
- Global Operations Network: Huntsman operates over 55 manufacturing and R&D facilities across 25 countries, employing around 6,000 associates, showcasing its robust global operational capabilities and market reach.
See More
Huntsman Corporation Reports Q4 2025 Financial Highlights
- Revenue Decline: Huntsman reported revenues of $1.355 billion for Q4 2025, a 7% decrease from the same period in 2024, primarily driven by lower average selling prices in the Polyurethanes and Performance Products segments, reflecting intensified market competition and weak demand.
- Widening Net Loss: The company recorded a net loss of $96 million in Q4 2025, an improvement from the $141 million loss in the previous year, but the adjusted net loss of $63 million indicates ongoing profitability pressures and market challenges.
- Reduced Free Cash Flow: Free cash flow for Q4 2025 was $20 million, significantly down from $108 million in Q4 2024, highlighting increased pressure on cash management and capital expenditures, which may impact future investment capabilities.
- Cautious Market Outlook: Despite generating nearly $300 million in operating cash flow in 2025, CEO Peter Huntsman noted that the economic cycle for chemicals may not improve significantly in the near term, emphasizing the company's focus on cash management and controlling fixed costs to navigate the uncertain market environment.
See More
Huntsman Reports Q4 2025 Financial Highlights
- Net Loss Reduction: Huntsman reported a net loss of $96 million for Q4 2025, down from $141 million in the same period last year, indicating gradual financial improvement despite ongoing market challenges, which may enhance investor sentiment.
- Adjusted Net Loss Increase: The adjusted net loss rose to $63 million compared to $43 million last year, reflecting ongoing pressures in cost management and market competition, potentially impacting future investor confidence.
- Significant Free Cash Flow Decline: Free cash flow for Q4 2025 was $20 million, a sharp drop from $108 million in the same quarter last year, indicating challenges in cash flow management that could limit future capital expenditures and growth potential.
- Decline in Adjusted EBITDA: The adjusted EBITDA for the fourth quarter was $35 million, down from $71 million year-over-year, highlighting persistent pressures on profitability that may affect the company's competitive position in the industry.
See More
J.P. Morgan Downgrades Huntsman to Neutral Amid Economic Concerns
- Rating Downgrade Impact: J.P. Morgan downgraded Huntsman (HUN) from Overweight to Neutral with a $14 price target, indicating that the current share price reasonably reflects a significant recovery in EBITDA, resulting in a 4.2% drop in Thursday's trading.
- Market Challenge Analysis: Analyst Jeffrey Zekauskas noted that Huntsman's polyurethane business, which accounts for over 50% of its EBITDA, faces challenges in construction markets due to rising interest rates, supply additions, and slower global economic growth.
- Economic Outlook: Although Zekauskas previously believed that business conditions would hit a trough in 2023-24, he now sees 2025 as being challenged by increased economic and tariff uncertainties, pushing Huntsman's recovery outlook to 2026.
- Growth Potential Assessment: Huntsman's value typically rises sharply in environments of declining interest rates and accelerating economic activity, and the analyst suggests that there is potential for price and volume gains if domestic economic growth accelerates.
See More
Huntsman (HUN) Q4 2025 Earnings Call Transcript
See More
Huntsman Q4 2025 Earnings Report Analysis
- Earnings Performance: Huntsman's Q4 2025 non-GAAP EPS of -$0.37 missed expectations by $0.06, indicating pressure on profitability that could affect investor confidence.
- Revenue Insights: The quarter's revenue of $1.36 billion exceeded market expectations by $20 million, suggesting a relatively stable sales performance despite the decline in overall profitability.
- Cash Flow and Capital Expenditure: Free cash flow for Q4 2025 was $20 million, a significant drop from $108 million in the same period of 2024, reflecting cash flow pressures in operations, while capital expenditures increased from $51 million to $57 million, indicating ongoing commitment to future investments.
- Liquidity Position: As of December 31, 2025, Huntsman had approximately $1.3 billion in cash and unused borrowing capacity, maintaining strong liquidity despite reduced cash flow, which will help navigate future uncertainties.
See More
Huntsman Declares Cash Dividend and Annual Meeting
- Cash Dividend Announcement: Huntsman's Board of Directors has declared a cash dividend of $0.0875 per share, payable on March 31, 2026, which is expected to provide stable returns to shareholders and enhance investor confidence.
- Annual Meeting Details: The 2026 Annual Meeting of Stockholders will be held virtually on April 29, 2026, requiring shareholders to register by March 6, 2026, ensuring their participation in voting and reflecting the company's commitment to shareholder rights.
- Financial Overview: Huntsman reported approximately $6 billion in revenue for 2025, indicating strong performance in the specialty chemicals market and further solidifying its competitive position globally.
- Global Operations Network: Huntsman operates over 55 manufacturing and R&D facilities across 25 countries, employing around 6,000 associates, showcasing its robust global operational capabilities and market reach.
See More
Huntsman Corporation Reports Q4 2025 Financial Highlights
- Revenue Decline: Huntsman reported revenues of $1.355 billion for Q4 2025, a 7% decrease from the same period in 2024, primarily driven by lower average selling prices in the Polyurethanes and Performance Products segments, reflecting intensified market competition and weak demand.
- Widening Net Loss: The company recorded a net loss of $96 million in Q4 2025, an improvement from the $141 million loss in the previous year, but the adjusted net loss of $63 million indicates ongoing profitability pressures and market challenges.
- Reduced Free Cash Flow: Free cash flow for Q4 2025 was $20 million, significantly down from $108 million in Q4 2024, highlighting increased pressure on cash management and capital expenditures, which may impact future investment capabilities.
- Cautious Market Outlook: Despite generating nearly $300 million in operating cash flow in 2025, CEO Peter Huntsman noted that the economic cycle for chemicals may not improve significantly in the near term, emphasizing the company's focus on cash management and controlling fixed costs to navigate the uncertain market environment.
See More
Huntsman Reports Q4 2025 Financial Highlights
- Net Loss Reduction: Huntsman reported a net loss of $96 million for Q4 2025, down from $141 million in the same period last year, indicating gradual financial improvement despite ongoing market challenges, which may enhance investor sentiment.
- Adjusted Net Loss Increase: The adjusted net loss rose to $63 million compared to $43 million last year, reflecting ongoing pressures in cost management and market competition, potentially impacting future investor confidence.
- Significant Free Cash Flow Decline: Free cash flow for Q4 2025 was $20 million, a sharp drop from $108 million in the same quarter last year, indicating challenges in cash flow management that could limit future capital expenditures and growth potential.
- Decline in Adjusted EBITDA: The adjusted EBITDA for the fourth quarter was $35 million, down from $71 million year-over-year, highlighting persistent pressures on profitability that may affect the company's competitive position in the industry.
See More
