Investing.com -- Piper Sandler downgraded Olin Corporation (NYSE:OLN) to "Neutral" from "Overweight" and lowered its price target to $33 from $41, citing a shallower-than-expected earnings recovery due to persistent economic challenges in Europe and Asia.
The firm said epoxy markets are likely to remain weak, while the recovery in Winchester earnings could be delayed as customers continue destocking through the first half of 2025. Additionally, the closure of Dow’s propylene oxide (PO) facility is expected to disrupt chloralkali markets.
Piper Sandler adjusted its model to reflect fourth-quarter and full-year 2024 earnings, 2025 guidance, and industry checks on raw material costs, construction activity, and export markets. It maintained a valuation multiple of 5.9x 2026 estimated EV/EBITDA.
The firm noted that a sluggish construction sector remains a key headwind, dampening pricing momentum across the chloralkali and vinyl chain. While Olin maintains a strong balance sheet and share repurchases could continue in 2025, the pace may slow due to lower earnings and economic uncertainty.
Piper Sandler said it sees little data supporting a volume or price recovery through most of 2025, with potential spillover into 2026, prompting the revised outlook.
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