ESI - Investor Day Takeaways

研报英文原文证据摘录

ESI - Investor Day Takeaways

Truist Securities

Equity Research Report May 18, 2026

INDUSTRIALS: Chemicals Element Solutions Inc (ESI)

ESI - Investor Day TakeawaysPeter Osterland, CFA

404-926-5136

Peter.Osterland@truist.com

Following ESI's Investor Day, we continue to believe that the company is well-positioned

to outpace underlying market growth particularly in its high-value Electronics business; we

Alek Ledvina also believe additional details around the company's recent bolt-on acquisitions underscore 404-439-7399

Alek.Ledvina@truist.com the company's disciplined approach towards accretive capital allocation. Overall we view

the company's refreshed growth algorithm as largely in line with expectations; execution

around Kuprion, which will modestly increase capital intensity in the near-term, remains a

key opportunity for upside in our view. We maintain our Buy rating and $47 PT.

Stock Rating BUY

Unchanged

Updated growth algorithm targets HSD/LDD EBITDA growth, mid-teens EPS CAGR.

Price Target $47.00 ESI expects its end markets will grow MSD in aggregate over the medium-term, with

Unchanged 1-2% of targeted outperformance supporting a 7% organic growth target; high-performance

computing and data center applications are expected to be the strongest growth vector with

a LDD underlying growth rate. ESI expects that mix will continue to shift towards Electronics

over time, targeting segment top-line growth of 9% vs Specialties growth of 5%. Combined

TR to Target 18.7% with 30-40% incremental margins, ESI targets sustainable LT EBITDA growth averaging in

Price (May 18, 2026) $39.88 the HSD/LDD, driving mid-teens EPS growth.

52-Wk Range $45.06-$21.01 Demand for increased complexity within electronics supply chain a key growth

Market Cap ($M) $9,719 driver going forward.