Mizuho Securities has revised its price target for Orion Engineered Carbons (OEC, Financial), lowering it from $15 to $13, while maintaining a Neutral rating on the stock. This adjustment reflects broader updates in the chemicals, agriculture, and packaging sectors, where market valuations have recently been scaled back.
Despite the changes, Mizuho remains cautious in altering forward year estimates significantly, as the firm does not anticipate a recession in the near term. However, the analyst notes that declining oil prices may weaken the gas-linked cost advantages for certain basic chemical stocks.
Moreover, Mizuho highlights that the pre-buying activities in the automotive and electronics industries observed during the March quarter could pose a short-term risk of demand pullback. Investors are advised to consider these factors when assessing the performance and potential of Orion Engineered Carbons moving forward.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Orion SA (OEC, Financial) is $18.50 with a high estimate of $24.00 and a low estimate of $15.00. The average target implies an upside of 59.07% from the current price of $11.63. More detailed estimate data can be found on the Orion SA (OEC) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Orion SA's (OEC, Financial) average brokerage recommendation is currently 2.0, 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 Orion SA (OEC, Financial) in one year is $21.52, suggesting a upside of 85.04% from the current price of $11.63. 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 Orion SA (OEC) Summary page.
