NPRA ’09: Huntsman sees stock price returning to $15-20

31 March 2009 01:28  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--Huntsman’s share price could return to $15-20 within 3-5 years when business rebounds and chemical stocks trade at historical multiples, company president and chief executive Peter Huntsman said on Monday.

“We believe that when this cycle turns, and we get to normalised EBITDA [earnings before interest, taxes, depreciation and amortisation] and normalised EBITDA multiples, we're looking at a stock that is five to seven times greater than it is today,” said Huntsman in an interview with ICIS news.

Normalised EBITDA for Huntsman would be around $1bn (€750m), he added.

“I’d be disappointed if we didn’t see this and a $15-20 stock price within the next three to five years,” said Huntsman, speaking on the sidelines of the International Petrochemicals Conference (IPC).

“We think we'll start to see light at the end of this tunnel by the end of 2009.  But we need to see consumer confidence, especially in North America, improve," he added.

Shares of Huntsman are down sharply from their 52-week high of $23.95 and closed on Monday at $3.19, down $0.29 or 8.3% on the day.

The stock collapsed after private equity firm Apollo Management walked away from its planned acquisition of Huntsman for $28/share in July 2008.  Huntsman and Apollo settled for $1bn in cash paid to Huntsman in December 2008.

“We are not looking to sell the company in today's environment,” said Huntsman.

“I'd have to feel, touch and smell the money before I'd trust a financial institution or private equity group again,” he added.

Sponsored by the National Petrochemical & Refiners Association (NPRA), the three-day IPC concludes on Tuesday.

($1 = €0.75)

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By: Joseph Chang
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