Olin Corporation (NYSE:OLN) is among the 15 Undervalued Momentum Stocks That Are Taking Off.
Deutsche Bank raised its target price on Olin Corporation (NYSE:OLN) from $23 to $26 while maintaining its Hold rating, according to a February 10 report from The Fly. The rating was issued days after the company reported weaker Q4 2025 earnings and provided softer guidance for FY 2026.
For Q4, the company reported sales of $1.67 billion, which were flat year over year (YoY) compared with the same quarter last year. Sales in its largest segment, Chlor Alkali Products and Vinyls, were down 10% YoY, which weighed on overall sales. However, profitability also fell short of expectations, with adjusted EBITDA declining 65% YoY to $67.7 million. Reported net loss for the quarter widened to $85.7 million or $0.75 per share, down from a net income of $10.7 million or $0.09 per share. The consensus was expecting a loss of $0.62 per share.
With cost pressures expected to persist, the company expects its first-quarter 2026 adjusted EBITDA to be lower than fourth-quarter 2025 levels.
On the softer results, Ken Lane, President and Chief Executive Officer, said:
”During the fourth quarter, we experienced continued headwinds related to the trough market environment exacerbated by customer destocking as well as planned maintenance turnarounds and unplanned operating events.” On the positive side, he argued, “We have begun to see benefits from our Beyond250 initiative, realizing a $44 million reduction in structural costs in 2025. As a result of proactive actions taken, we generated $321.2 million of operating cash flow in fourth quarter 2025 and ended the year with net debt comparable to year-end 2024.”
The results have led analysts to adopt a cautious outlook, resulting in downward revisions to price targets. Among these firms, BMO Capital lowered its price target marginally from $25 to $24, while Citi and RBC Capital lowered theirs from $24 to $21.
Olin Corporation (NYSE:OLN) is a leading vertically integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid.
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Disclosure: None. This article is originally published at Insider Monkey.
