Huntsman (HUN) Stock Forecast & Price Target

Huntsman is viewed favorably because its core Polyurethanes franchise is proving resilient, with MDI pricing discipline offsetting rising raw material costs and 4Q EBITDA guided at $70M versus $69M previously. The upcoming merger with OLN, expected to close in just 2-3 months, adds meaningful value through synergies estimated at $6 per share on an NPV basis, while management’s cost actions in Europe and PU should support earnings through 2025-26 and 2027. Advanced Materials is also accelerating, with 12% volume growth in 3Q and demand tied to aerospace, power, automotive, renewables, and AI data centers, while net leverage is expected to improve to about 4x lower by year-end as working capital unwinds.

Huntsman is facing fundamental pressure from its core Polyurethanes business, as U.S. MDI pricing has weakened from October’s contract of 123c/lb while BASF is still offering 98-110c/lb, signaling an increasingly competitive market. Elevated feedstock and European energy costs, along with higher nat gas, benzene, ethane, and ethylene costs, threaten margins just as supply normalizes and new capacity from competitors raises oversupply risk in key chemistries. With 2027 PU EBITDA projected at $195M, down 12% y/y, and downside 2026E EBITDA of $418M assuming softer demand in housing, construction, autos, B&C, and coatings, the outlook remains negative.