Jefferies Turns Bullish on Quaker Chemical, Sees Upside Potential

Quaker Chemical Corporation (NYSE:KWR) is one of the 8 cheap beginner stocks to buy right now. On June 9, Quaker Chemical Corporation (NYSE:KWR) was upgraded from Hold to Buy by Jefferies analysts. In keeping with its optimistic assessment of the company's performance, the firm also increased its price target from $115 to $146.

Despite challenges in the end markets, Jefferies analysts emphasized Quaker Chemical's strong margins and return on capital employed (ROCE), which are still higher than 2019 levels. Over the course of four years, they observed a notable decline in the company's EV/EBITDA, which has caused share prices to drop to levels comparable to those at which earnings per share were less than $5.

According to the analysts, Quaker Chemical Corporation (NYSE:KWR) is a "good quality-at-a-reasonable-price candidate," with a free cash flow yield of 7%. By highlighting the company's competitive edge and cyclical leverage, they predict that earnings will likely grow in 2026.

Jefferies also believes that Quaker Chemical's shares may rerate relative to its peers, which may mean that the stock could reach $245 in 2027. In the best-case scenario, analysts predict that KWR could triple by 2030.

Quaker Chemical Corporation (NYSE:KWR) is a global provider of industrial products for heavy manufacturing sectors. The company offers a wide range of products, with a focus on rolling lubricants, hydraulic fluids, forming and forging fluids, corrosion inhibitors, and metal removal fluids.

While we acknowledge the potential of KWR 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.

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