Morgan Stanley Initiates Coverage on Ashland (NYSE:ASH)

Key Points

• Morgan Stanley has initiated coverage on Ashland (NYSE:ASH) with an "equal weight" rating and a price target of $60.00, representing a potential upside of 9.33% from the stock's previous close.
• The consensus rating for Ashland among analysts is "Hold," with an average target price of $61.43, reflecting varied outlooks as some firms have issued buy ratings while others have suggested hold positions.
• In its recent earnings report, Ashland posted an EPS of $1.04, missing estimates by $0.11, and reported a 14.9% decline in revenue year-over-year, highlighting challenges in the company's financial performance.

Equities researchers at Morgan Stanley assumed coverage on shares of Ashland (NYSE:ASH - Get Free Report) in a report issued on Monday,Benzinga reports. The firm set an "equal weight" rating and a $60.00 price target on the basic materials company's stock. Morgan Stanley's price target indicates a potential upside of 9.33% from the company's previous close.

A number of other analysts have also commented on the company. BMO Capital Markets lifted their price objective on Ashland from $60.00 to $61.00 and gave the stock a "market perform" rating in a research report on Tuesday, September 2nd. Wall Street Zen upgraded Ashland from a "sell" rating to a "hold" rating in a research report on Friday, June 27th. Argus reduced their target price on Ashland from $70.00 to $65.00 and set a "buy" rating on the stock in a report on Tuesday, August 26th. Wells Fargo & Company raised their target price on Ashland from $50.00 to $53.00 and gave the stock an "equal weight" rating in a report on Thursday, July 31st. Finally, UBS Group reduced their target price on Ashland from $73.00 to $64.00 and set a "buy" rating on the stock in a report on Thursday, August 7th. Three research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $61.43.

Ashland Price Performance

Shares of ASH stock opened at $54.88 on Monday. The stock has a 50-day moving average price of $53.18 and a 200 day moving average price of $53.12. The company has a quick ratio of 1.33, a current ratio of 2.68 and a debt-to-equity ratio of 0.73. The firm has a market cap of $2.51 billion, a price-to-earnings ratio of -2.93, a PEG ratio of 3.93 and a beta of 0.52. Ashland has a 12 month low of $45.21 and a 12 month high of $89.09.

Ashland (NYSE:ASH - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The basic materials company reported $1.04 EPS for the quarter, missing analysts' consensus estimates of $1.15 by ($0.11). The firm had revenue of $463.00 million during the quarter, compared to analyst estimates of $479.34 million. Ashland had a positive return on equity of 6.82% and a negative net margin of 46.01%.Ashland's revenue for the quarter was down 14.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.49 earnings per share. Ashland has set its FY 2025 guidance at EPS. Research analysts expect that Ashland will post 4.27 EPS for the current year.

Hedge Funds Weigh In On Ashland

Several institutional investors have recently modified their holdings of ASH. AQR Capital Management LLC lifted its holdings in shares of Ashland by 284.3% during the 2nd quarter. AQR Capital Management LLC now owns 3,454,646 shares of the basic materials company's stock valued at $172,318,000 after purchasing an additional 2,555,585 shares in the last quarter. Allspring Global Investments Holdings LLC raised its position in Ashland by 33.1% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 2,291,157 shares of the basic materials company's stock valued at $132,383,000 after buying an additional 569,740 shares during the last quarter. Shapiro Capital Management LLC raised its position in Ashland by 172.5% in the 4th quarter. Shapiro Capital Management LLC now owns 670,785 shares of the basic materials company's stock valued at $47,934,000 after buying an additional 424,595 shares during the last quarter. 1832 Asset Management L.P. raised its position in Ashland by 48.7% in the 1st quarter. 1832 Asset Management L.P. now owns 1,228,525 shares of the basic materials company's stock valued at $72,839,000 after buying an additional 402,286 shares during the last quarter. Finally, Cooperman Leon G raised its position in Ashland by 16.6% in the 1st quarter. Cooperman Leon G now owns 1,694,151 shares of the basic materials company's stock valued at $100,446,000 after buying an additional 240,686 shares during the last quarter. Institutional investors own 93.95% of the company's stock.

About Ashland

Ashland Inc provides additives and specialty ingredients in the North and Latin America, Europe, Asia Pacific, and internationally. It operates through Life Sciences, Personal Care, Specialty Additives, and Intermediates segments. The Life Sciences segment offers pharmaceutical solutions, including controlled release polymers, disintegrants, tablet coatings, thickeners, solubilizers, and tablet binders; nutrition solutions, such as thickeners, stabilizers, emulsifiers, and additives; and nutraceutical solutions comprising products for weight management, joint comfort, stomach and intestinal health, sports nutrition, and general wellness, as well as custom formulation, toll processing, and particle engineering solutions.

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