Solstice Advanced Materials Inc: 2Q/2026 raise should clear the bar; Could be the all clear needed for the stock

研报英文原文证据摘录

Solstice Advanced Materials Inc: 2Q/2026 raise should clear the bar; Could be the all clear needed for the stock

Forecast returns

Forecast price appreciation 40.1%

Forecast dividend yield 0.6%

Forecast stock return 40.7%

Market return assumption 9.3%

Forecast excess return 31.4%

Company Description

Solstice is a leading specialty chemical producer with annual sales of ~$4bn. Solstice is divided

into two segments: Refrigerants and Applied Solutions (RAS, ~70% of sales) and Electronics

and Specialty Materials (ESM, ~30% of sales). RAS consists primarily of LGWP refrigerants

and blowing agents (No. 2 producer globally), as well as smaller nuclear fuel conversion and

medical packaging businesses. ESM sales are spread across varied end markets including

electronic materials, ballistic protection armor, and fine/specialty chemicals for niche research/

processing applications.

Valuation Method and Risk Statement

Our price target for Solstice is based on an EV/EBITDA multiple relative to the local markets.

Key risks to our earnings estimates and/or price target include a change in regulatory

environment impacting compliance dates for lower emitting HVAC equipment or production

limits of legacy refrigerants, greater than expected macroeconomic weakness resulting in

weaker resi/non-res construction trends, and slower than anticipated growth in

semiconductor production or nuclear power generation capacity.

Element Solutions Inc:

Our price target is based on a P/E multiple relative to the local market. Element Solutions has

made acquisitions in the past, and this is part of the ongoing long term strategy. The M&A

market can be highly cyclical and we believe Element has some risks similar to boutique

investment banks which cycle with M&A activity.