The firm raised its price target outlook due to what it sees as the benefits of management focusing more on segment volatility and improving free cash flow conversion.
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Separately, TheStreet Ratings team rates HUNTSMAN CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HUNTSMAN CORP (HUN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, impressive record of earnings per share growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 325.0% when compared to the same quarter one year prior, rising from -$24.00 million to $54.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.3%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 377.77% and other important driving factors, this stock has surged by 41.04% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- HUNTSMAN CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HUNTSMAN CORP reported lower earnings of $0.54 versus $1.53 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $0.54).
- Net operating cash flow has slightly increased to -$67.00 million or 9.45% when compared to the same quarter last year. Despite an increase in cash flow, HUNTSMAN CORP's cash flow growth rate is still lower than the industry average growth rate of 37.62%.
- You can view the full analysis from the report here: HUN Ratings Report