12 Best Chemical Stocks to Buy According to Analysts

4) Olin Corporation (NYSE:OLN)

Average Upside Potential: 42.4%

Number of Hedge Fund Holders: 33

Olin Corporation (NYSE:OLN) manufactures and distributes chemical products in the US, Europe, Asia Pacific, Latin America, and Canada. BofA upped the company’s stock to “Buy” from “Neutral,” assigning a price target of $40. As per the analyst, the valuation is highly attractive. The analyst believes that Olin Corporation (NYSE:OLN) possesses the best FCF yield in BofA’s commodity coverage. Furthermore, the company is relatively well-insulated from the risks of the Trump administration, considering its limited exposure to China and its significant US operations.

BofA sees that the company’s EBITDA has troughed in 2024 and is expected to move higher in 2025. As a global leader in the chlor alkali sector, Olin Corporation (NYSE:OLN) has a strong market presence despite witnessing industry-wide headwinds. Its cost reduction and growth initiatives focus on bolstering its competitive position over the coming years. The company remains well-placed to capitalize on the recovery in end-market demand, mainly in the construction and manufacturing sectors.

With the improvement in utilization rates, the company’s cost reduction efforts are expected to become more impactful, resulting in margin expansion. Furthermore, a revival in the housing market, mainly due to expected interest rate cuts in 2025, can fuel demand for Olin Corporation (NYSE:OLN)’s products, mainly in chlor alkali and epoxy segments.