Analyst Hamed Khorsand of BWS Financial maintained a Buy rating on Ecovyst (ECVT – Research Report), retaining the price target of $12.00.
Hamed Khorsand has given his Buy rating due to a combination of factors that highlight Ecovyst’s potential for growth and recovery. The company has shown resilience in its financial performance, particularly through contract renewals that have led to higher selling prices, which in turn have contributed to an increase in adjusted EBITDA despite lower sales figures. This indicates that Ecovyst is effectively managing its pricing strategy to offset challenges in sales volume.
Additionally, the advanced materials segment is showing signs of revival, positioning the company to potentially exceed EBITDA estimates. Although sales from ecoservices were lower than expected, the overall sales forecast for the year has been raised by $30 million, reflecting a positive outlook. Despite the unchanged profit metrics, the expectation is that Ecovyst’s stock will recover much of its previously lost value, making it an attractive investment opportunity.