Huntsman downgraded to Equal Weight at Morgan Stanley on MDI headwinds

As previously reported, Morgan Stanley analyst Vincent Andrews downgraded Huntsman to Equal Weight from Overweight with a $28 price target. While Huntsman “certainly offers significant option value to any improvement” in U.S. building and construction, the firm’s $28 price target “requires a significant stretch to the implied EBITDA multiple on 2024,” the analyst tells investors. The firm believes that MDI markets globally will likely remain well supplied even with a perk up in B&C from potential declines in interest rates and adds that the now forecast decline in global auto builds would be a new headwind to MDI demand.