BMO Capital Markets raised its price target for Element Solutions Inc (NYSE:ESI) to $37 from $35 and kept an Outperform rating, reflecting what the bank described as improving momentum in electronics and semiconductor-related end-markets. The stock is trading near its 52-week high of $33.34 and has returned approximately 30% over the past six months, according to the pricing snapshot noted alongside the analyst action.
Element Solutions reported 13% organic revenue growth in the fourth quarter, a gain the company attributed to solid demand trends across electronics and semiconductor applications. The company disclosed current revenue of $2.5 billion and an EBITDA of $507 million, and issued a 2026 outlook that beat expectations.
Management addressed recent concerns about the effect of rising memory prices in its guidance commentary. Company executives said that January order books remained robust, and they expect to sustain outperformance relative to broader electronics end-markets on a trajectory similar to the back half of 2025.
Strategic execution continues to be a focus. Kuprion secured its first customer, and management reiterated a targeted path to reduce leverage rapidly to roughly 2.5 times net debt to EBITDA by the end of 2026. BMO retained Element Solutions as one of its top picks, noting that the company’s near-term focus is likely to shift gradually from integrating recent acquisitions toward additional capital deployment.
In more detailed financial and corporate developments, Element Solutions provided March quarter 2026 adjusted EBITDA guidance with a midpoint near $148 million. That midpoint sits slightly below Mizuho’s estimate of $150 million but above the Bloomberg consensus figure of $146 million.
The company also declared a quarterly cash dividend of $0.08 per share, payable on March 16, 2026. On the deal-making front, Element Solutions completed the acquisition of Micromax, financing that purchase through a $450 million add-on to its existing term loan and by securing a new $500 million revolving credit facility.
Element Solutions finalized another acquisition, purchasing EFC Gases & Advanced Materials. The business will operate as a standalone unit within the company’s Specialties Segment, a move that the company said will bolster its capabilities in semiconductor manufacturing and other advanced applications.
Analyst responses to the company’s updates were broadly constructive. Mizuho raised its price target to $35 and maintained an Outperform rating. BofA Securities increased its price target to $33 following discussions with the company’s CEO about growth and cash deployment strategies.
Summary
Element Solutions has seen meaningful analyst support after reporting double-digit organic growth in the fourth quarter, issuing an above-expectations 2026 outlook and closing strategic acquisitions. Management outlined clear leverage and capital-deployment goals, while analysts adjusted price targets upward and retained positive ratings.
Key points
- BMO raised its price target on Element Solutions to $37 from $35 and kept an Outperform rating.
- Element Solutions reported 13% organic Q4 growth, with current revenue of $2.5 billion and EBITDA of $507 million; the company issued a 2026 outlook that exceeded expectations.
- Recent acquisitions (Micromax and EFC Gases & Advanced Materials), a $0.08 quarterly dividend, and a plan to reduce leverage to about 2.5 times by year-end 2026 were highlighted; Mizuho and BofA also raised price targets.
Risks and uncertainties
- Rising memory prices were noted as a potential headwind in the company’s guidance commentary, which could affect electronics-related demand.
- March quarter adjusted EBITDA guidance sits slightly below one analyst estimate, underscoring near-term earnings sensitivity and the potential for variability in reported results.
- The company’s leverage reduction plan depends on execution; failure to reduce leverage as planned could constrain capital flexibility.
These developments touch sectors including electronics, semiconductor manufacturing, specialty chemicals and the broader capital markets given the company’s financing activity and analyst coverage.