From Yahoo Finance: 2025-04-24 15:56:00

JP Morgan analyst Jeffrey J. Zekauskas downgraded Orion S.A. (NYSE: OEC) from Overweight to Neutral and revised the price forecast from $18 to $12. The analyst views Orion as fairly valued with an estimated EV/EBITDA multiple of 5.2x for 2025 and 4.6x for 2026, citing ongoing economic uncertainty.

Orion’s peer, Cabot, trades at a 1.3x EBITDA multiple premium compared to Orion, according to the analyst. Zekauskas sees the valuation gap as within a normal range, indicating limited potential for further multiple expansion. The analyst projects stabilization in Orion’s rubber black segment in 2025 and a volume recovery in the specialty carbon black business.

Earnings outlook remains unchanged with an expected free cash flow yield of 15% in 2026. Orion plans to release first quarter 2025 results on May 7. OEC shares are down 0.29% at $12.20. JP Morgan anticipates limited upside for Orion amid uncertain economic conditions.

Read more: Orion Stock Has Limited Upside Amid Uncertain Economic Backdrop: JP Morgan