“We believe much of this underperformance comes on the back of concerns about the sustainability of the styrenics cycle coupled with the near-term impact of higher oil-linked feedstock costs. Our analysis suggests these fears may be overblown. Trinseo’s Q2’18 earnings release offered guidance for 2018 that calls for y-o-y earnings growth based mostly on continued earnings strength in the legacy Feedstocks (BP&F) segment. We agree with management’s 2018 view and believe that the combination of product prices outpacing feedstock costs will lead to y-o-y earnings gains at Trinseo in 2018.”
According to TipRanks.com, Ahmed is a 4-star analyst with an average return of 4.9% and a 52.8% success rate. Ahmed covers the Consumer Goods sector, focusing on stocks such as Westlake Chemical Corp, Venator Materials Plc, and LyondellBasell.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Trinseo with a $90 average price target.
Trinseo’s market cap is currently $3.48B and has a P/E ratio of 9.52. The company has a Price to Book ratio of 4.34.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock.
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Trinseo SA engages in the manufacture and marketing of plastics, latex binders, and synthetic rubber. It operates through the Performance Materials and Basic Plastics & Feedstocks divisions. The Performance Materials division includes latex, synthetic rubber, and performance plastics segments.