
ESI Stock Forecast & Price Target
ESI Analyst Ratings
Bulls say
Element Solutions Inc. demonstrates a robust financial outlook, primarily driven by a 13% growth in circuitry demand linked to AI and data center markets. The company's Industrial & Specialty segment exhibited a notable improvement in margins, rising 420 basis points year-over-year to 23.7%, indicating success from productivity initiatives and strategic new business wins despite challenging demand conditions. Furthermore, the Electronics segment reported an 11% year-over-year sales increase, alongside a strong mid-teens growth in wafer-level packaging, both suggesting potential for enhanced earnings growth through margin-accretive opportunities moving forward.
Bears say
Element Solutions Inc faces a negative outlook primarily due to a forecasted decline in electric vehicle (EV) volumes, which is adversely impacting the power electronics business, alongside a potential prolonged downturn in semiconductor production that could hinder earnings recovery. Weakness in industrial and construction activity is also exerting pressure on the Industrial & Specialty segment, while anticipated slowdowns in investments related to AI and data centers may limit top-line growth. Furthermore, heightened tensions between the U.S. and its trading partners, along with the rising strength of the U.S. dollar affecting profitability from international sales, compound the challenges facing the company.
This aggregate rating is based on analysts' research of Element Solutions Inc and is not a guaranteed prediction by Public.com or investment advice.
ESI Analyst Forecast & Price Prediction
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