KeyBanc has raised its price target on Element Solutions Inc. (NYSE: ESI) to $36, up from $34, while maintaining an Overweight rating on the stock. At the time of the note the new target represented roughly 7% upside from Element Solutions’ then-current share price of $33.69, with the stock trading close to a 52-week high of $35.18.
The brokerage’s upgrade in target reflects evidence that Element Solutions’ advanced packaging offerings are being adopted more quickly than previously observed, and that the recovery cycle has broadened to include printed circuit boards in addition to semiconductor materials. KeyBanc framed the development as a meaningful expansion of the addressable market for the company’s electronics portfolio.
On the margin front, the analyst highlighted that incremental margins in the Electronics segment came in below expectations. A notable contributor to the shortfall was a recent spike in metal prices, which KeyBanc characterized as a temporary headwind anticipated to reverse in the first half of the year. The firm said the outlook for margins should improve as those input-cost pressures moderate.
KeyBanc signaled that Element Solutions shares could rerate upward if organic growth in the Electronics segment accelerates, and it attributed the higher price target to a stronger earnings forecast for the company. The note links the valuation update directly to the combination of accelerating end-market adoption and improved near-term profit expectations.
Other recent company developments
- Element Solutions reported 13% organic growth in the fourth quarter, driven primarily by robust demand in the electronics and semiconductor sectors.
- The company issued a 2026 outlook that exceeded expectations.
- Element completed its acquisition of Micromax, financing the deal with a $450 million add-on to its existing term loan and establishing a new $500 million revolving credit facility.
- Several sell-side firms reacted positively: BMO Capital raised its price target to $37, Mizuho lifted its target to $35 - both keeping an Outperform rating - and BofA Securities increased its target to $33 while maintaining a Buy rating.
- Element Solutions declared a quarterly cash dividend of $0.08 per share, payable on March 16, 2026.
These moves - from product adoption and a broadened electronics cycle to a completed acquisition and upgraded guidance - collectively underpin recent analyst upgrades. KeyBanc’s adjustment emphasizes the interplay between revenue growth in electronics end markets and the company’s ability to translate that growth into improved earnings, once transient input-cost pressures subside.