Jefferies initiates Element Solutions at Buy with $55 target

Jefferies has initiated coverage of Element Solutions $ESI with a Buy rating and a $55 price target.
The firm views Element Solutions as a way to gain exposure to the broader trend of increasing electronics content across industries rather than relying solely on advanced semiconductor demand.
Jefferies expects longer-term compound growth to be supported by the rollout of physical AI, while near-term performance remains sensitive to global economic conditions, auto demand, interest rates and oil prices.
Its base case assumes muted global growth alongside continued strength in AI-related industrial markets. A synchronized global recovery could lift EPS growth by an estimated 10%-15%, while a recession could reduce forecasts by roughly 7%-10%.