Sep. 12 at 3:32 PM
Mizuho downgraded Huntsman Corp from Neutral to Underperform, citing rising MDI imports from China and weak end-market demand that could further pressure the U.S. chemical maker's profits. Despite a 20% share gain last quarter, fundamentals remain weak, and the stock may revisit prior lows; the price target was cut to
$9, about 19% below current levels.
Huntsman, which earns most revenue from MDI used in insulation, bedding, automotive seats, refrigerator panels, and sneakers, faces intensified foreign competition. Slower construction in China is boosting MDI exports to the U.S., while exposure to weak durable goods markets and elevated U.S. customer inventories weigh on volumes and margins.
The balance sheet is a growing concern: net debt is ~4.2x expected earnings, over twice typical leverage, though credit agreements were revised earlier this year for flexibility.
$HUN