Truist Securities Affirms Element Solution's (ESI) 'Buy' Rating on Expectations of Solid Q2 Results

Element Solutions Inc (NYSE:ESI) is one of the best chemical stocks to buy, according to billionaires. On July 8, Truist Securities reiterated a ‘Buy’ rating on the stock and a $24 price target. The buy stance is in response to the company’s second-quarter pre-announcement.

The company expects its second-quarter adjusted EBITDA to come in at $135 million, exceeding the $125 million that Truist Securities had expected. The better-than-expected earnings are driven by strength in the high-margin Electronics business.

Additionally, Element Solutions has increased its full-year adjusted EBITDA guidance to between $530 million and $550 million. It is a significant improvement from the previous guidance of between $520 million and $540 million. According to Truist Securities, the company is benefiting from robust growth in data centers and advanced semiconductor packaging.

Element Solutions Inc (NYSE:ESI) develops and manufactures specialty chemicals. It provides a range of chemical systems for cleaning, preparing, and protecting metal and plastic surfaces. Its coatings are used in various industries, including automotive, aerospace, and consumer electronics.

While we acknowledge the potential of ESI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 12 Best Consumer Goods Stocks Billionaires Are Quietly Buying and Goldman Sachs Penny Stocks: Top 12 Stock Picks.

Disclosure: None. This article is originally published at Insider Monkey.

newsletter][/daily-newsletter]