Bank of America has revised its stance on Element Solutions (ESI, Financial), elevating the stock from Neutral to Buy. The financial services giant has set a new price target for the specialty chemicals company at $24, slightly reduced from its previous target of $29.
Despite a 34% drop in Element Solutions' share price over the past two months, analysts see this decline as a favorable entry point for investors. This outlook is supported by the company's strategic manufacturing setup, which consists of 55 global sites strategically located near customers. This footprint allows Element Solutions to minimize the direct impacts of tariffs by swiftly adjusting production locations to manage raw material costs and demand more effectively.
The adaptability of Element Solutions' operations suggests a strong potential to mitigate tariff-related challenges, making the current stock price an appealing opportunity according to Bank of America analysts.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Element Solutions Inc (ESI, Financial) is $30.42 with a high estimate of $34.00 and a low estimate of $24.00. The average target implies an upside of 61.20% from the current price of $18.87. More detailed estimate data can be found on the Element Solutions Inc (ESI) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Element Solutions Inc's (ESI, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Element Solutions Inc (ESI, Financial) in one year is $21.53, suggesting a upside of 14.1% from the current price of $18.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Element Solutions Inc (ESI) Summary page.
