KeyCorp Sets Negative FY2026 EPS Estimate for Huntsman

KeyCorp issued a research report on Thursday, September 10, projecting that Huntsman Corporation will report a basic materials loss of $0.15 per share for fiscal year 2026. This estimate is more optimistic than the current analyst consensus, which anticipates a broader deficit of $0.25 per share. The firm maintains an Overweight rating on the stock with a price objective of $14.00, positioning its outlook ahead of several peers who recently lowered their targets.

The divergence in estimates highlights a split in institutional sentiment regarding the company's near-term profitability. While KeyCorp sees a path to reduced losses, other major banks have recently adopted more conservative stances. This disconnect is reflected in the current market data from GN markets/earnings (en-US), where Huntsman’s consensus rating remains a Hold with an average price target of $12.62, indicating caution despite the individual bullish view from KeyCorp.

Peer Estimates Reflect Cautious Outlook

Recent research notes from other investment banks underscore a trend of downward revisions for the chemical manufacturer. Royal Bank of Canada and UBS Group both reduced their price objectives from $11.00 to $10.00 on August 3, assigning Sector Perform and Neutral ratings respectively. Deutsche Bank reissued a Hold rating with an $11.00 target on August 20, while Weiss Ratings downgraded the stock to a Sell D- on the same date. These moves suggest that most institutions expect continued pressure on earnings, contrasting with KeyCorp’s relatively higher valuation target.

CEO Purchase Signals Confidence

Amidst the mixed analyst ratings, CEO Peter R. Huntsman executed a significant personal investment in the company. On August 3, he purchased 100,000 shares at an average cost of $9.81 per share, totaling approximately $981,000. This transaction increased his direct ownership stake by 1.40%, bringing his total holdings to over 7.25 million shares. The move occurred while the stock traded near its 52-week low of $7.30, suggesting internal confidence in the firm’s long-term value despite the current loss projections.

Dividend Policy Maintained Despite Losses

Huntsman continues to distribute cash to shareholders even while forecasting negative earnings. The company announced a quarterly dividend of $0.0875 per share, payable on September 30 to holders of record on September 15. This payout represents an annualized yield of 3.7% based on recent trading levels. Although the current negative earnings result in a negative payout ratio, the consistent dividend provides a fixed income component for investors monitoring the stock’s market capitalization of $1.67 billion and its debt-to-equity ratio of 0.59.