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Ashland (NYSE:ASH) +1.4% in Thursday's trading as J.P. Morgan upgrades shares to Neutral from Underweight with an $89 price target, saying volume growth has turned positive for the Personal Care segment, but negative pricing remains a concern for both the Life Sciences and in Specialty Additives businesses.
Ashland (ASH) is facing business challenges in its Life Sciences and Specialty Additives segments, which to a degree cloud its business outlook, and the company indicated a slowing in its volume pattern and an increase in price competition as it entered its FY 2024 September quarter, JPM analyst Jeffrey Zekauskas says.
The company sells coatings intermediates in China into markets that are contracting and price competitive at this juncture, while its commodity butanediol business appears to be near the trough, and volume may begin to pick up in FY 2025, according to the analyst, who also believes Ashland (ASH) is interested in expanding its presence in pharmaceutical and personal care markets through acquisition.
