BofA Securities has raised its price target on Element Solutions (ESI) to $33.00 from $31.00 while retaining a Buy rating on the specialty chemicals provider. The new target implies roughly a 15% upside from the stock's recent trading level of $28.69, with shares positioned close to a 52-week high of $29.88.
The boost in the price objective followed investor sessions with Element Solutions' chief executive, where conversations centered on the company's value proposition, growth outlook and plans for deploying cash. The firm highlighted the company's asset-light approach and the strategic exposure that brings to AI-related and datacenter capital spending, in addition to opportunities tied to increasing complexity in semiconductor chips and circuit boards.
Market and company data show Element Solutions maintains a strong liquidity profile, with a current ratio of 4.05. That balance sheet strength underpins the company's ability to pursue acquisitions and other cash deployment initiatives, including a recent $450 million add-on to its existing senior secured term loan B to help finance deals.
BofA projected that Element Solutions can achieve mid-single digit organic revenue growth, with operating leverage and disciplined cash deployment providing tailwinds toward higher margins. Specifically, the analyst firm sees the potential for high single-digit EBITDA growth and double-digit growth in earnings per share. Historical performance provides context for these expectations: the company has recorded a 5-year revenue compound annual growth rate of 6%, and consensus analyst estimates point to EPS of $1.50 for fiscal 2025.
Reflecting increased confidence in the company's trajectory and upside linked to expected sales traction for Kuprion, BofA raised its valuation multiple to 15 times 2026 EBITDA from 14 times previously and designated Element Solutions as a Top Pick for 2026. On current measures, the stock trades at an enterprise value to EBITDA multiple of 15.78, modestly above a calculated fair value metric used by market observers, even as analysts continue to favor the shares.
Recent company results and corporate actions add to the backdrop for the analyst upgrade. Element Solutions reported third-quarter 2025 results that exceeded both earnings and revenue expectations. The company posted earnings per share of $0.41 versus a $0.40 consensus and reported revenue of $656.1 million compared with a $646.82 million forecast. Element Solutions also completed its acquisition of EFC Gases & Advanced Materials, which will operate as a standalone business unit inside the company’s newly renamed Specialties Segment. The transaction expands the firm's capabilities in specialty and rare gases and advanced materials, opening additional opportunities in semiconductor manufacturing and related end markets.
Alongside these developments, the company declared a quarterly cash dividend of $0.08 per share, payable on December 15, 2025 to shareholders of record on December 1, 2025. Separately, KeyBanc Capital Markets raised its own price target for the company to $34.00 and maintained an Overweight rating, citing strong growth in the Electronics segment and robust demand for materials used in high-performance computing and artificial intelligence applications.
Investors will weigh the analyst upgrade and the company’s latest operational and financial moves against the current market valuation and execution risks tied to acquisitions and new product traction. With liquidity to support further deals and a policy of returning cash to shareholders via dividends, Element Solutions is positioned to pursue growth both organically and through targeted transactions while monitoring demand from AI and datacenter-related end markets.
Summary
BofA increased its price target for Element Solutions to $33 from $31, keeping a Buy rating after meeting with management and citing exposure to AI, datacenter capex and semiconductor complexity. The company reported a Q3 2025 beat on EPS and revenue, completed the acquisition of EFC Gases & Advanced Materials, declared a quarterly dividend, and secured a $450 million loan add-on. KeyBanc also raised its price target to $34 and kept an Overweight rating.