• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Powder Coatings Market

    Performance Enhancing Additives

    The Role Of Kilowatt Hours In Measuring Mill Performance

    The 2023 Marine Coatings Market

    PPG: Treated Silicas Enable Tire Manufacturing Energy Savings and Reduced Complexity
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    Becker’s Global Mental Health Program Shows Positive Impact

    Pacific Coatings Show Invites Industry to Top-Class Programs

    PPG Introduces PPG SUSTAINABILITY CO₂NCEPT System

    Gulf and Pacific Coatings Show Invite Professionals to Top-Class Programs

    Sherwin-Williams Reveals 2024 Color of the Year, Upward SW 6239
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    PPG Introduces PPG SUSTAINABILITY CO₂NCEPT System

    Sherwin-Williams Reveals 2024 Color of the Year, Upward SW 6239

    PPG Completes $2.7 Million Expansion of Powder Coatings Factory in Sumaré, Brazil

    U.S. Green Building Council Announces 2023 Leadership Award Recipients

    PPG Revitalizes Nursery School in Brazil as Part of New Paint for a New Start Initiative
    Additives
    Binders
    Pigments
    Solvents

    Birla Carbon Releases its 11th Sustainability Report

    Microban Launches Ascera Antimicrobial Technology

    Orion S.A. Invests €12.8 Million in Circular Carbon Black Project

    Univar Solutions Expands Distribution Relationship with Dow in Germany for Silicone Additives

    Safic-Alcan to Distribute Union Colours’ Organic Pigments in France & Benelux Region
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Clariant Additives

    Siltech Corporation

    EPS

    Shepherd Color Company, The

    W. R. Grace & Co.
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Greenbuild International Conference + Expo

    The Gulf Coatings Show

    Western Coatings Symposium 2023

    Pacific Coatings Show

    CHINACOAT 2023
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Clariant Additives

    Siltech Corporation

    EPS

    Shepherd Color Company, The

    W. R. Grace & Co.
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Glossary
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Expert's Opinion

    Huntsman Corp- Analyst Comments on Venator Materials PLC (VNTR) SPO

    ...

    Huntsman Corp- Analyst Comments on Venator Materials PLC (VNTR) SPO
    12.01.17
    Huntsman Corporation (HUN, Buy: $40 PT) 
    Venator SPO Helps Pave Path to Investment Grade

    • Venator announced a secondary public offering (SPO). After the close on Monday Buy-rated Venator Materials PLC (VNTR) launched a SPO of 18.0mn shares to be sold by Buy-rated Huntsman. Huntsman also granted the underwriters a 30-day option to purchase up to an additional 2.7mn shares. We view the news as consistent with Huntsman’s stated objective to monetize its stake in Venator and consider the event a marginal positive for Huntsman to the extent that VNTR shares have generally performed well since the company’s IPO at $20.00 per share on 3 August 2017. On a post-SPO basis, Huntsman’s ownership stake in Venator would decline from 75.4% to 58.5%, or 56.0% assuming exercise of the underwriters’ option.
    • Deal timing is early, yet unsurprising to us. With regard to timing, we note that this SPO occurs before the expiration of Venator’s 180-day post-IPO lockup period on 30 January 2018. However, we are not at all surprised by the timing given market speculation in recent weeks that Huntsman may wish to act sooner in order to take advantage of favorable market conditions. We continue to expect Huntsman’s remaining stake in Venator to be monetized fully by...
    • Proceeds help pave the path to investment-grade status. Management has over-delivered on FCF targets over the past two years and has committed to a forward range of $400-600mn, which implies a FCF yield of 5.3% to 8.0% vs. our 6.2% in 2018. We are impressed with the company’s progress on capex and also working capital, which is embedded in incentive compensation across the portfolio. Thanks to solid FCF and proceeds from the IPO of VNTR, Huntsman’s net debt stood at $2.4bn on 30 September, or 1.9x our 2018 estimate of EBITDA, which includes zero contribution from Venator, since we extracted this business from our financial model following its re-classification as a discontinued operation effective 1 July 2017. On a pro forma basis for today’s SPO less estimated taxes and fees of 10%, Huntsman’s net debt would sink to $2.0bn or 1.6x our 2018 estimate of EBITDA of $1.26bn. Looking further ahead, full monetization of VNTR, would imply...
    • We rate shares of HUN Buy, with a price target of $40. Our price target implies total return potential of 32%, including a dividend yield of 1.6%. As a reminder, following the mutual abandonment of the Clariant MOE, we adjusted our valuation methodology to be more consistent with that of diversified chemical industry peers, such as Celanese and Eastman. We now value Huntsman based on the value of its stake in VNTR net of taxes and fees ($6-7 per HUN share pre-deal and ~$5 post-deal) plus an average of the following three methodologies on an ex-Venator basis: DCF analysis, a relative P/E framework, and a relative EV/EBITDA framework. Our DCF analysis suggests a warranted value of $44 per share on a Huntsman stand-alone basis. Using our relative valuation framework, our P/E multiple at a 35% discount to the S&P500 multiple implies a fair value of $29, while our EV/EBITDA-based valuation incorporates a discount of 2.75 turns vs. our coverage average, and implies a fair value of $27 per HUN share. 
    (Please see full report for details)
    Related Searches
    • clariant
    • chemical
    Suggested For You
    Venator’s TiO2 JV Plant Resumes Operations After Production Halt Venator’s TiO2 JV Plant Resumes Operations After Production Halt
    Chemicals - Analyst Provides Notes from Gulf Coast Plant Tours, Meetings Chemicals - Analyst Provides Notes from Gulf Coast Plant Tours, Meetings
    Huntsman Corporation - Analyst Provides Insight After Meeting with Management Huntsman Corporation - Analyst Provides Insight After Meeting with Management
    Eastman Chemical, Huntsman, LyondellBasell Industries - Raises Price Targets After Earnings Eastman Chemical, Huntsman, LyondellBasell Industries - Raises Price Targets After Earnings
    Eastman Chemical, Huntsman - Analyst Comments on Amazing 3Q17 Results; HUN/Clariant Deal Break Eastman Chemical, Huntsman - Analyst Comments on Amazing 3Q17 Results; HUN/Clariant Deal Break
    Clariant, Huntsman Jointly Decide to Abandon Planned Merger of Equals Clariant, Huntsman Jointly Decide to Abandon Planned Merger of Equals
    LyondellBasell Industries (LYB) - Analyst Comments on 3Q17 Results LyondellBasell Industries (LYB) - Analyst Comments on 3Q17 Results
    Vertical Research Partners: Celanese Corporation 3Q17 Results Vertical Research Partners: Celanese Corporation 3Q17 Results
    Huntsman: Analyst Positive Despite Headwinds After Hurricane Harvey Huntsman: Analyst Positive Despite Headwinds After Hurricane Harvey
    Huntsman Polyurethanes Division Participating in Conference Tracks at CPI Conference Huntsman Polyurethanes Division Participating in Conference Tracks at CPI Conference
    HuntsmanClariant Merger on Track HuntsmanClariant Merger on Track
    Investors Buy Stake in Clariant  in Bid to Hault Huntsman Merger Investors Buy Stake in Clariant in Bid to Hault Huntsman Merger
    Ethylene Cycle Update; Wave Two of Supply is Building Ethylene Cycle Update; Wave Two of Supply is Building

    Related Breaking News

    • Additives | Breaking News | Industry News
      Venator’s TiO2 JV Plant Resumes Operations After Production Halt

      Venator’s TiO2 JV Plant Resumes Operations After Production Halt

      Venator is a manufacturer and marketer of chemical products that comprise a broad range of pigments and additives.
      Coatings World staff 10.05.20

    • Breaking News
      Chemicals - Analyst Provides Notes from Gulf Coast Plant Tours, Meetings

      Chemicals - Analyst Provides Notes from Gulf Coast Plant Tours, Meetings

      ...
      11.13.17

    • Breaking News
      Huntsman Corporation - Analyst Provides Insight After Meeting with Management

      Huntsman Corporation - Analyst Provides Insight After Meeting with Management

      ...
      11.09.17


    • Breaking News
      Eastman Chemical, Huntsman, LyondellBasell Industries - Raises Price Targets After Earnings

      Eastman Chemical, Huntsman, LyondellBasell Industries - Raises Price Targets After Earnings

      ...
      10.30.17

    • Breaking News
      Eastman Chemical, Huntsman - Analyst Comments on Amazing 3Q17 Results; HUN/Clariant Deal Break

      Eastman Chemical, Huntsman - Analyst Comments on Amazing 3Q17 Results; HUN/Clariant Deal Break

      ...
      10.28.17

    Loading, Please Wait..
    Trending
    • PPG Completes $2.7 Million Expansion Of Powder Coatings Factory In Sumaré, Brazil
    • Sherwin-Williams Reveals 2024 Color Of The Year, Upward SW 6239
    • Diamond Vogel Opens Innovation Center
    • U.S. Green Building Council Announces 2023 Leadership Award Recipients
    • Birla Carbon Releases Its 11th Sustainability Report
    Breaking News
    • Becker’s Global Mental Health Program Shows Positive Impact
    • Pacific Coatings Show Invites Industry to Top-Class Programs
    • PPG Introduces PPG SUSTAINABILITY CO₂NCEPT System
    • Gulf and Pacific Coatings Show Invite Professionals to Top-Class Programs
    • Sherwin-Williams Reveals 2024 Color of the Year, Upward SW 6239
    View Breaking News >
    CURRENT ISSUE

    September 2023

    • Powder Coatings Market
    • Performance Enhancing Additives
    • The Role Of Kilowatt Hours In Measuring Mill Performance
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Curcumin May Be As Effective as PPI for Indigestion
    Adding Human Milk Component to Formula Linked to Long-term Cognitive Benefits for Babies
    Women in Nutraceuticals Launches Pilot Mentorship Program
    Coatings World

    Latest Breaking News From Coatings World

    Pacific Coatings Show Invites Industry to Top-Class Programs
    PPG Introduces PPG SUSTAINABILITY CO₂NCEPT System
    Gulf and Pacific Coatings Show Invite Professionals to Top-Class Programs
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    FDA Awards Nearly $7.5 Million to Pediatric Device Consortium
    Elixir Medical Finishes Clinical Study Enrollment for its Coronary Implant
    Quest Diagnostics Launches Prostate Cancer Test
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Nexcella Completes 2nd NXC-201 Engineering Batch
    Almirall Upgrades Werum PAS-X MES
    Rentschler Names Industry Veterans to Leadership Posts
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    GK Hair Expands Color Range to 125 Hues
    WPO and AIPIA Sign MoU to Collaborate on Smart Packaging
    SuperstarBots & Skin Match Redefine Personalized Beauty Recommendations with Social Media Chatbot
    Happi

    Latest Breaking News From Happi

    CeraVe Expands Dermatology Residency Training Program at the George Washington University School of Medicine and Health Sciences
    In Your Face Skincare Celebrates Success with Exclusive Day Spa Partnerships
    Sephora To Sell Canopy’s Filtered Showerhead
    Ink World

    Latest Breaking News From Ink World

    Pacific Coatings Show Invites Industry to Top-Class Programs
    Wikoff Color Announces Appointment of Mark C. Lewis as New CEO
    2023 CPIPC Christmas Party will be Saturday, Dec. 9
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Bastille Parfums strengthens traceability with Avery Dennison RFID technology
    UPM Raflatac announces winners of RafCycle Award
    Eaglewood Technologies opens Cincinnati service center
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Ahlstrom Launches Laundry Care Product
    Sandler Repositions Brands
    Soft N' Dry Seeks to Expand Private Label Roll Out
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Lincotek Marks its 50th Anniversary
    FDA OKs Standalone Indication for ChoiceSpine's Blackhawk Ti Cervical Spacer
    Carlsmed Earns Breakthrough Status for aprevo to Treat Cervical Spine Disease
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    German Government, Bavaria Commit Support to ams OSRAM
    ASSA ABLOY Acquires Evolis
    Zebra Technologies Introduces Zebra Pay Mobile Payment Solution

    Copyright © 2023 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login