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BofA trims Olin stock PT by $2, cites 'slightly lower 2024E EBITDA'

EditorIsmeta Mujdragic
Published 04/29/2024, 08:08 AM
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On Monday, BofA Securities made an adjustment to the price target of Olin Corp (NYSE: NYSE:OLN), a major chemical company, reducing it to $72.00 from the previous $74.00. Despite the price target reduction, the firm maintained a Buy rating on the stock.

The revision followed the latest earnings release under Olin's new CEO Ken Lane. The report highlighted the company's continued commitment to a strategy that has been well-received by investors. This strategy focuses on preserving the value of the Electrochemical Unit (ECU) and making necessary cutbacks.

BofA Securities noted that Olin is projecting its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the year to be close to or above the $1.31 billion mark achieved in 2023. This represents a slight modification from previous expectations of an increase in EBITDA. The firm expressed that reaching a similar EBITDA level as last year would still constitute a successful year for Olin.

The analyst from BofA Securities reiterated confidence in the company's direction and performance, stating that the new price objective reflects a minor adjustment based on the slightly lower projected EBITDA for 2024. The firm's stance remains optimistic regarding Olin's outlook and the strategic measures being implemented under the new leadership.

InvestingPro Insights

As BofA Securities reaffirms its confidence in Olin Corp with a Buy rating, it's noteworthy to consider additional insights from InvestingPro. Olin's management has been assertively repurchasing shares, signaling a strong belief in the company's value. This is coupled with a high shareholder yield, which may appeal to investors looking for companies with a track record of returning value to shareholders.

InvestingPro Data also reveals that Olin has maintained dividend payments for an impressive 51 consecutive years, indicating a commitment to consistent shareholder returns. Despite recent revenue declines, the company's valuation implies a robust free cash flow yield, which is a positive sign for future financial health. Moreover, analysts predict Olin will remain profitable this year, further supporting the company's stable outlook.

For those seeking a deeper analysis, InvestingPro offers additional tips on Olin Corp, providing a more comprehensive understanding of the company's financials and market position. Interested readers can enhance their investment strategy by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking exclusive insights and data.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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