Huntsman Corporation (NYSE: HUN) received an underperform rating from Steve Byrne of B of A Securities on October 14, marking a cautious turn in analyst sentiment. The downgrade highlights mounting concerns about the company’s near-term growth prospects and valuation, suggesting investors should brace for continued volatility and subdued returns. Byrne’s revised price target of $8 slightly undercuts the stock’s current trading level, signaling limited upside from present prices.
Recent Market Activity Reflects Unease
At the close of the latest session, Huntsman shares traded at $8.19, just above the downgraded price target. While the stock ticked up 3.48%, adding $0.29 on the day, the broader trading picture points to muted enthusiasm. Volume stood at 223,902 shares, markedly below the three-month average daily volume exceeding 4.8 million—indicating relatively thin trading liquidity. The stock’s beta of 0.65 confirms its below-market sensitivity, which may appeal to risk-averse traders but also signifies restrained momentum.
Over the past year, HUN has struggled mightily, off 65.16% amid a challenging chemical sector and persistent global supply chain concerns. The stock remains 65.8% below its 52-week high, underscoring the steep losses investors have absorbed. Despite recent bounces, volatility remains elevated, with weekly swings averaging 5.26%, reinforcing a landscape of heightened price uncertainty.
Deep Dive into Performance Metrics
Huntsman’s 30-day and 90-day returns have also mirrored a difficult market environment, retreating 21.55% and 27.52% respectively. These declines far outpace losses across many defensive and cyclical peers, suggesting company-specific pressures. Monthly volatility at 4.47% aligns with the stock’s broader recent instability, while average trading volume over the past 10 days remains robust near 5.4 million shares, reflecting sporadic periods of investor attention.
This performance trajectory signals that Huntsman is still contending with structural headwinds, including weak demand in end markets and commodity price fluctuations weighing on margins. While some recovery potential exists, the current downside momentum cautions against premature optimism.
Earnings Profile Points to Ongoing Challenges
The company’s latest earnings report released on July 31, 2025, failed to inspire confidence, with Huntsman posting a negative EPS of -$0.20 against an estimated loss of -$0.15. Although this represented a modest earnings surprise on the downside, it underscored the firm’s ongoing profitability struggles. The prior quarter had shown a smaller loss of -$0.11, precisely matching estimates, highlighting a deterioration in quarterly results that adds to investor concerns.
These earnings shortfalls reflect persistent margin pressures and the inability to fully offset rising costs through price hikes or operational efficiencies. The weak profit profile suggests Huntsman’s financial health remains fragile as macroeconomic headwinds persist.
Analyst Consensus Indicates Market Skepticism
Looking beyond Byrne’s downgraded stance, the consensus view paints a mixed but predominantly cautious picture. Among 10 analysts covering the stock in the past 90 days, only one carries a Buy rating, with half maintaining Holds and the remainder recommending Sell positions. The average price target stands at $9.45, modestly above the current level but well below recent highs near $14.
This distribution of analyst opinion signals tempered expectations for near-term growth and potentially extended valuation pressures. Hunters Corp’s fundamental uncertainties appear well reflected in this balanced yet wary analyst community.
Fundamental Health: A Low Stocks Telegraph Grade
Huntsman’s Stocks Telegraph Grading Score (ST Score) sits at 29, a relatively low mark that suggests limited fundamental strength. This composite rating captures a blend of financial stability, growth potential, and risk factors, with scores under 40 typically indicating caution for investors. For Huntsman, the score reflects ongoing earnings volatility, compressed margins, and subdued investor enthusiasm.
In an industry where innovation and operational leverage can propel fortunes, Huntsman’s low grade implies it currently lacks a compelling investment thesis anchored in strong fundamentals or breakthrough developments.
Conclusion: A Cautious Play for Select Investors
For investors, Huntsman Corporation currently represents a high-risk proposition with muted upside potential. The recent downgrade to Underperform and price target alignment below the stock’s last price suggest limited near-term gains. Persistent earnings challenges, significant share price decline over the past year, and a cautious analyst consensus all reinforce a bearish outlook.
Huntsman may appeal to value-oriented investors who have a high risk tolerance and a longer time horizon, betting on eventual recovery of chemical markets and operational improvements. Conversely, growth seekers and those less comfortable with volatility may want to look elsewhere.
Ultimately, Huntsman is worth watching as a turnaround candidate, but investors should remain vigilant about sector headwinds and the company’s earnings trajectory before committing capital.
