Olin Upgraded to Overweight by Wells Fargo on Improving ECU Margins
Wells Fargo upgraded Olin (NYSE: OLN) to Overweight from Equal Weight, assigning a $35 price target.
The firm said the upgrade was driven by expectations for a meaningful improvement in chlor-alkali (ECU) margins during the second and potentially third quarters of 2026, supported by supply disruptions linked to the Iran conflict.
As a result, Wells Fargo raised its 2026 EBITDA estimate for the company to $650 million from $500 million.
The firm expects ECU margins to rise into the low- to mid-$300 per short ton range in the second and third quarters, compared with levels just below $200 per short ton in the first quarter of 2026.
Additionally, caustic soda pricing is projected to increase by at least $50 per short ton, further supporting margin expansion.
These factors underpin the firm’s more constructive outlook on Olin’s earnings trajectory.
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