.July 29, 2024 04:51:00 PM

KeyBanc analysts revised the price target for Olin Corporation (NYSE:OLN) to $62 from $69, maintaining an Overweight rating on the stock. Olin’s new EBITDA guidance of approximately $940 million ($1,040 million excluding Hurricane Beryl) is seen as achievable, with a potential run-rate EBITDA of $1.2 billion for 2025. Encouragingly, the $100 million impact from Hurricane Beryl is expected to be limited to the third quarter, with asset restarts planned for August. Positive momentum in U.S. caustic soda and epoxy markets, along with stable chlorine prices, supports a favorable outlook for Olin shares.

Despite concerns over the guidance reset, analysts credit Olin’s management for setting realistic expectations. The company’s robust Winchester demand is offset by higher costs due to propellant shortages. While the new CEO’s adjustments were delayed, analysts see substantial upside potential for Olin within their coverage universe. The analysts maintain an Overweight rating on Olin shares, despite trimming the price target due to softer earnings forecasts for 2024 and 2025.