Solstice Advanced Materials Inc Takeaways from meetings with management

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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