ESI: Quick Thoughts Post Virtual Investor Day

研报英文原文证据摘录

ESI: Quick Thoughts Post Virtual Investor Day

Chemicals

Electronics Materials - Market Overweight

ELEMENT SOLUTIONS INC (ESI) May 19, 2026

ESI: Quick Thoughts Post Virtual Investor Day Rating:

Outperform

The Wolfe Byte Price: $39.88

Post ESI’s virtual CMD we remain comfortable in its LT growth algo (likely Price Target:

conservative albeit still implies mkt outperformance) and prospects for increasing $47

incremental margins. % Upside:

17.9%

View ESI Model

Rhetoric More Bullish than Headline Appears: ESI's growth algo "only" rising by View Comp Table

~1% pt vs. 2022 (pre-AI catalysts) appears disappointing vs. bulls' expectations - but Company Information

is likely conservative. 52-Week Range $21 - $45

The implied deceleration vs. 1H26 #'s is rooted in 3rd party forecasts (similar to Q) Market Cap. (MM) $9,715 Enterprise Value (MM) $11,713

- to which we believe ESI retains substantial upside via mkt outperformance - which Shares Out. (MM) 243.6

has been quite consistent. Avg. Value Traded (MM) $195.40

SI% of Float 5.8%

It's notable that: (i.) the algo is conservative re: Kuprion contributions (<1% pt

Price Performance

embedded, opportunity for double that rate dependent entirely upon capacity ramps),

YTD LTM

(ii.) ESI is not seeing any signs of an imminent end-mkt slowdown, and (iii.) execution ESI 60% 79%

on the ~$100mm of addressable costs (automation, etc.) renders further upside to the S&P 500 8% 24%

~30-40% incremental margin framework. 50

Our Take: We feel incrementally more positive re: portfolio evolution (see below) - 45

which points to improving sustainability even if ESI is not outright committing itself 40

to DD% growth as a base case (which is still possible). As it relates to the growth 3530