KeyBanc analyst Aleksey Yefremov has adjusted the price target for Element Solutions (ESI, Financial), moving it down to $28 from the previous $29 target. Despite this slight reduction, the firm maintains an Overweight rating on the shares, signaling ongoing confidence in the company's performance.
The analyst highlights that updates regarding the impact of tariffs on demand during April and May will be critical for chemical companies as they report their first-quarter earnings. Although the first-quarter results and projections for 2025 have become somewhat less pivotal, KeyBanc emphasizes the importance of other emerging topics.
Among these topics are the potential exposure of companies to U.S. imports of raw materials from countries with high tariffs and strategies to manage pricing in response to increased costs. Additionally, the firm foresees early indicators of slowing demand, noting that several data points from March reflect weak trends, which likely continued, albeit slightly softened, into April.
