We originally covered US-listed additives company Ashland back in May (here) adding it to our Hitlist for the International Equities Portfolio. It was trading at ~$US77 with an improving outlook which quickly got captured in the share price which ran up to $US100, without our participation. This week, they released mixed Q3 results and lowered their FY24 sales guidance. Most analysts’ lower earnings estimates as a result, and shares are back in the low 80’s.
While the earnings picture is now less certain, the risk/reward in ASH US has improved dramatically, with the stock now on the cheaper side of history. This is a defensive business, that ~$100 was trading on a ‘growthier’ multiple than it warranted.
- We continue to like ASH and will retain it on the Hitlist.
MM is bullish ASH US around $US80
Add To Hit List
