Mizuho on Tuesday raised its price target for Element Solutions Inc. (NYSE: ESI) to $35 from $29 while retaining an Outperform rating, reflecting the bank's view of upside from the current share price of $32.31. InvestingPro data cited in company materials show the stock trading near a 52-week high of $33.34 and slightly above a Fair Value estimate.
The seventh-month guidance from Element Solutions pointed to a March quarter 2026 adjusted EBITDA midpoint of approximately $148 million. That figure compares with a $150 million estimate from Mizuho and a $146 million Bloomberg consensus. On a nine-month basis, the implied 2026 adjusted EBITDA midpoint is roughly $513 million versus a $502 million consensus figure.
Element Solutions included in its 2026 guidance results from its recently acquired businesses, with the EFC and Micromax units together contributing about $70 million of EBITDA to the outlook. The company also issued a full-year 2026 adjusted earnings-per-share target - an increase in the mid-to-high teens percentage range to approximately $1.73. Mizuho and broader consensus analysts had been modeling roughly $1.75 per share for the year.
For the December quarter of 2025, Element Solutions reported adjusted EBITDA of $136 million. On an organic basis this represented 7% to 8% year-over-year growth, which matched Mizuho's estimate and was marginally below the $137 million consensus level. Management cited strength in electronic chemicals as a positive offset to slower growth in metal plating, the latter occurring against relatively easy year-earlier comparisons.
Strategic transactions completed earlier this year have substantially shifted the company's profit mix. Following the acquisitions of EFI, which closed on January 5, and Micromax, which closed on February 2, approximately 75% of the company’s EBITDA now originates from technology materials. The EFC Gases & Advanced Materials acquisition will operate as a standalone business unit within the newly renamed Specialties Segment and is intended to expand the company’s capabilities in specialty and rare gases, with potential application in semiconductor manufacturing and space markets.
Financing for the Micromax deal included a $450 million add-on to Element Solutions’ existing senior secured term loan B and the establishment of a new $500 million revolving credit facility. The company also declared a quarterly cash dividend of $0.08 per share, with payments scheduled for December 15, 2025 and March 16, 2026 to shareholders of record as of December 1, 2025 and March 2, 2026, respectively.
Outside research coverage moves have mirrored the positive tone from Mizuho. Bank of America Securities raised its price target from $31 to $33 and maintained a Buy rating after discussions with the company’s CEO about Element Solutions’ growth profile and plans for cash deployment.
Financial health metrics cited alongside the company’s release showed a favorable balance-sheet picture. InvestingPro data characterized Element Solutions’ overall financial health score as "GREAT" at 3.06 and noted that liquid assets exceed short-term obligations.
Investors will have an opportunity to hear directly from management when the company’s chief executive participates at the Mizuho Technology Conference on June 9 and 10.
Context and implications
The combination of Mizuho’s upgraded target, the integration of acquired businesses into guidance, and balance-sheet metrics that show ample liquidity frames the current market view of Element Solutions as a company reshaping its revenue and earnings base toward technology materials and specialty gases. The completed acquisitions and financing arrangements are central to that transition and are reflected in both near-term EBITDA contributions and in how analysts are setting targets.
What to watch next
- How the EFC and Micromax units perform against the $70 million EBITDA contribution assumed in guidance.
- Execution of integration plans for the newly consolidated Specialties Segment and any operational updates disclosed at investor events such as the Mizuho Technology Conference.
- Progress on cash deployment priorities discussed with analysts, and how the company balances dividend policy with debt raised to finance acquisitions.