Solstice Advanced Materials Inc Takeaways from meetings with management

Research evidence excerpt

Solstice Advanced Materials Inc Takeaways from meetings with management

Global Research

20 July 2026ab

Solstice Advanced Materials Inc Equities

United StatesTakeaways from meetings with management

Chemicals, Specialty

12-month rating Buy

Hosted meetings with the CEOs from SOLS & ESI

We hosted meetings with CEOs from both companies to help address investor 12m price target US$78.00

questions about the SOLS/ESI deal. A key message is both CEOs believed that there

is a better together aspect of the deal that is underappreciated. The fast pace of

Price (20 Jul 2026) US$56.47

development of AI infrastructure is driving more of a convergence among different

suppliers into the value chain, and more value can be captured by those that are RIC: SOLS.O BBG: SOLS US

able to co-develop solutions. This has been our base view for ESI's portfolio,

Trading data and key metrics

spanning semis, packaging, and assembly materials. This product set is

52-wk range US$88.60-41.43

complemented by Solstice's assets in semis (sputtering targets/vapor deposition)

and thermal management materials. This higher growth also benefits from larger Market cap. US$9.00b

corporate scale which helps drive the majority of cost savings. Management was Shares o/s 159m (COM)

optimistic on the ability to outperform the cost savings targets ($180M by yr 3, Free float 100%

$210M yr 5), and sees a clear path to revenue synergies which would layer on top Avg. daily volume ('000) 2,713

of announced targets. We go through more specific takeaways below Avg. daily value (m) US$204.5

Common s/h equity (12/26E) US$1.72b

From a stock perspective, we think there is upside to SOLS (and ESI) stocks in a deal

P/BV (12/26E) 5.2x

or no deal scenario. From our conversations, even though SOLS stock is down