
Olin (OLN) Stock Forecast & Price Target
Olin (OLN) Analyst Ratings
Bulls say
Olin Corporation reported 3Q sales of $1.71 billion, reflecting an 8% year-over-year increase, driven primarily by strong performance within its Epoxy segment, which saw a 23% rise in sales to $350 million. The company anticipates improved pricing for caustic soda supported by tighter supply and stable demand in the fourth quarter, alongside a strategic pivot of commercial production capacity towards the international military market, capitalizing on attractive margins. Furthermore, Olin has enhanced its run-rate savings target to a range of $70 million to $90 million, indicating a commitment to operational efficiency that could bolster profitability as demand conditions improve.
Bears say
Olin Corporation's fourth-quarter guidance reflects a significant projected earnings reduction of approximately $40 million due to inventory write-downs, although this strategy is expected to generate a working capital benefit of about $150 million, keeping net debt stable year-over-year. Additionally, the company's commercial Winchester sales encountered a 24% year-over-year decline in the second quarter, exacerbated by elevated inventory levels at retail customers amid weak consumer demand. The potential for larger declines in industrial end markets for caustic soda and the risk of a prolonged recession in Europe may further impair Olin's profitability across key segments such as EDC and epoxy.
This aggregate rating is based on analysts' research of Olin and is not a guaranteed prediction by Public.com or investment advice.
Olin (OLN) Analyst Forecast & Price Prediction
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