Wells downgrades Huntsman to Equal Weight on tariff uncertainty

Wells Fargo downgraded Huntsman (HUN) to Equal Weight from Overweight with a price target of $13, down from $17. The firm reduced the company’s estimates again to reflect low visibility amid tariff headwinds and weakness across the construction, auto, consumer discretionary, and industrial markets. Wells cites weakness in the construction and automotive markets, two of Huntsman’s largest end markets, due to tariffs and macro uncertainty for the downgrade. While tariffs may have a positive impact on methylene diphenyl diisocyanate pricing in the U.S., this will be more than offset by lower demand and direct tariff impacts on other areas of Huntsman’s business, contends Wells.