BWS Financial analyst Hamed Khorsand maintained a Buy rating on Ecovyst today and set a price target of $12.00.
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Hamed Khorsand has given his Buy rating due to a combination of factors influencing Ecovyst’s strategic position and financial outlook. The company has recently transformed into a focused ecoservices entity by divesting its Advanced Materials & Catalysts business, which not only simplifies its operations but also enhances the predictability of its financial performance. This strategic move allows Ecovyst to concentrate on its core competencies, potentially leading to more stable and transparent quarterly results.
Furthermore, the sale of the Advanced Materials & Technology segment for $530 million after expenses provides a significant cash influx, which could be utilized for further growth initiatives or debt reduction. The acquisition of a facility in Waggaman, Louisiana, with plans to increase its utilization, indicates potential for operational expansion and increased efficiency. Overall, Khorsand sees the intrinsic value of the remaining business as being significantly higher than its current market valuation, justifying the Buy rating.
In another report released on September 12, Deutsche Bank also maintained a Buy rating on the stock with a $11.00 price target.