Alembic Global analyst Hassan Ahmed maintained a Buy rating on Olin (OLN – Research Report) today and set a price target of $60.00.
Hassan Ahmed has given his Buy rating due to a combination of factors including a strong earnings performance and a positive outlook for Olin Corporation. The company’s first-quarter earnings surpassed expectations with a higher than anticipated EBITDA and EPS, reflecting robust results in their Chemical business. Particularly, the Chlor Alkali Products and Vinyls (CAPV) segment showed an upward inflection, which is a promising sign for future performance. Moreover, the company’s reaffirmed guidance for FY2024 suggests earnings may exceed the consensus, indicating a healthy financial trajectory for Olin.
Additionally, the new CEO’s strategy prioritizing “value over volume” aligns with protecting the company’s margins, which could lead to sustained profitability. This approach entails adjusting operations to market demand, ensuring that the company does not compromise on price to sell additional volume. The Winchester segment’s growth, driven by higher commercial ammunition shipments, also contributed to the optimistic outlook. Considering these positive indicators, including the anticipated continuation of momentum into the second quarter, it is understandable why Ahmed rated OLN as Overweight with a target price indicating potential upside.
In another report released on April 19, RBC Capital also maintained a Buy rating on the stock with a $69.00 price target.
Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OLN in relation to earlier this year.
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Olin (OLN) Company Description:
Olin Corp. engages in manufacturing of chemicals products. It operates through the following segments: Chlor Alkali Products and Vinyls, Epoxy, and Winchester. The Chlor Alkali Products and Vinyls segment manufactures and sells chlorine and caustic soda, ethylene dichloride and vinyl chloride monomer, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. . The Epoxy segment produces and sells epoxy materials, which includes allyl chloride, epichlorohydrin, liquid epoxy resins and downstream products such as converted epoxy resins and additives. The Winchester segment produces and sells sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. The company was founded by Franklin W. Olin in 1892 and is headquartered in Clayton, MO.
