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Huntsman Analysts Downgrade Ratings, Price Targets Plummet

Analysts express bearish sentiment on Huntsman Corp, exemplified by downgrades and a drop in price targets, indicating potential challenges ahead for investors. Huntsman shows mixed financial indicators, suggesting a cautious outlook for a 1-3 month holding period.

Date: 
AI Rating:   5

Recent Analyst Downgrades and Ratings: Huntsman (NYSE: HUN) has experienced considerable shifts in analyst sentiment over the last few months, reflecting a bearish trend as evidenced by the recent ratings table. Notably, 4 analysts have rated it as somewhat bullish, whereas the most recent evaluations show a decline in optimism, with no analysts rating it as bullish in the last 30 days.

The analysts have lowered price targets significantly, with the current average target dropping to $17.78 from $21.11, indicating a 15.77% decrease. This negative adjustment suggests that analysts foresee challenges ahead for Huntsman, aligning their perspective with potential market complications.

Financial Indicators: Huntsman has demonstrated a revenue growth rate of 3.49%, which is positive; however, the company is still grappling with severe profitability issues, as emphasized by a net margin of -9.71%. This negative margin highlights the challenges potential investors may face regarding profitability and competitiveness. Additionally, Huntsman has an ROE of -4.64%, further illustrating inefficiencies in utilizing shareholder equity to generate returns. Such indicators could intensify concerns for potential investors as it indicates weak financial health.

Despite a manageable debt-to-equity ratio of 0.76, a prudent approach to debt management might not be enough to offset the underlying profitability challenges. The market capitalization of Huntsman is also noted to be constrained relative to industry peers, which could hinder its ability to grow and adapt in a competitive landscape.

Investor Outlook: In light of the analyst downgrades and underlying financial challenges, the overall sentiment surrounding Huntsman seems cautious. The lack of bullish ratings, alongside significant price target cuts, points toward potential volatility in the short term. Investors should consider this analysis when making decisions regarding Huntsman shares, especially with a holding period of 1 to 3 months in mind.

Stocks:  HUN