Is HUN a good stock to buy? We came across a bullish thesis on Huntsman Corporation on Valueinvestorsclub.com by wfc. In this article, we will summarize the bulls’ thesis on HUN. Huntsman Corporation’s share was trading at $11.51 as of March 19th. HUN’s forward P/E was 1.00k according to Yahoo Finance.
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Huntsman Corporation has continued to face headwinds in its end markets, driving share price declines, yet the company itself has strengthened operationally through strategic transformation and disciplined self-help initiatives. Over the past two decades, Huntsman has shifted from a broadly diversified chemical conglomerate to a focused specialty chemicals producer, divesting Base Chemicals, Titanium Dioxide, Chemical Intermediates, and Textile Effects to concentrate on higher-value, differentiated products.
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Today, the company generates approximately $6 billion in annual revenue through three core segments: Polyurethanes (65% of revenue), Performance Products (17%), and Advanced Materials (18%). Polyurethanes, focused on MDI-based formulations, serves construction, automotive, and appliance markets, with a strong North American footprint. Performance Products targets amines and maleic anhydride applications, while Advanced Materials supplies high-purity resins for aerospace, transportation, industrial, power generation, and semiconductor markets, including E-GRADE chemicals.
Despite a current global MDI oversupply pressuring prices, medium-term dynamics are improving as new capacity from BASF is expected to be absorbed in H1 2026, Chinese volumes remain constrained in the U.S., and European high-cost production faces potential closures. Self-help measures, including $100 million in cost savings, plant closures, SG&A optimization, and a substantial dividend cut, enhance margin resilience and free cash flow. With $1.5 billion of well-structured, low-cost debt and $1.4 billion in liquidity, the company is positioned to weather cyclical volatility.
Looking forward, revenue in 2026 is projected around $5.75 billion with EBITDA recovering to $342 million, while longer-term upside stems from a potential housing market rebound, improved MDI supply-demand balance, and structural growth in aerospace and semiconductors. With normalized EBITDA potential of $450–700 million, Huntsman offers 52–200% upside from the current stock price, underscoring compelling risk/reward for investors. Catalysts include North American supply-demand balance, absorption of new capacity, and a macroeconomic recovery in construction and interest rates.
Previously, we covered a bullish thesis on Eastman Chemical Company (EMN) by Necessary-Damage5658 in November 2024, which highlighted the company’s regulatory-compliant positioning and resilience in industrial and medical chemical segments. EMN’s stock price has depreciated by approximately 31.97% since our coverage. wfc shares a similar view on Huntsman Corporation (HUN) but emphasizes operational transformation, self-help initiatives, and upside from MDI recovery and aerospace growth.
Huntsman Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held HUN at the end of the fourth quarter which was 39 in the previous quarter. While we acknowledge the risk and potential of HUN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HUN and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
