BMO Capital analyst John McNulty maintained a Hold rating on Ashland yesterday and set a price target of $61.00.
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John McNulty has given his Hold rating due to a combination of factors influencing Ashland’s current financial standing and future prospects. Despite Ashland’s modest success in slightly exceeding EBITDA expectations for the fourth quarter, the overall environment remains challenging. The company’s guidance for fiscal 2026 suggests a flat to modest growth in EBITDA, with market expectations varying widely, indicating uncertainty about the company’s ability to drive core growth.
While Ashland has made strategic moves such as exiting lower-margin businesses and focusing on cost optimization, there remains a need for clearer visibility into its normalized earnings potential and demand in end markets. The mixed performance across different business segments and the slower realization of cost-saving initiatives contribute to a cautious outlook. As a result, McNulty remains intrigued but prefers to wait for more concrete signs of sustainable growth before revising the rating.
In another report released on October 31, Morgan Stanley also maintained a Hold rating on the stock with a $60.00 price target.