Ashland’s new composites distributor
On June 21, Ashland (ASH) announced a new composites distributor for France. VELOX is expected to replace Quimidroga, which previously managed the composites distribution. This change is expected to be effective on July 1.
VELOX is expected to distribute unsaturated polyester resin, low-profile additive products, epoxy vinyl ester resins, and gel coat. In its fiscal second quarter, its Composites segment reported revenues of $238.0 million, a 28.0% year-over-year increase.
Alessandro Lago, sales director of the Composites segment for EMEA, said, “We are excited to have VELOX representing us in the French market.” Lago continued, “The VELOX team has considerable commercial experience in the composites business and the right technical expertise to support Ashland’s growth in the French market.”
Ashland’s stock price gained 0.4% and closed at $78.00 for the week ended June 22. As a result, the stock traded 7.5% above its 100-day moving average price of $73.01, which indicates an upward trend in the stock.
On a year-to-date basis, Ashland stock has gained 10.3%. Analysts are bullish on the stock and have increased the target price to $86.20 versus the earlier recommendation of $84.50. This implies a return potential of 9.8% from its closing price on June 22.
Ashland’s RSI (relative strength index) of 56 suggests that the stock neither overbought nor oversold.
Ashland underperformed the Invesco Russell MidCap Pure Value ETF (PXMV) and declined 0.2% for the week. PXMV invests 1.6% of its portfolio in Ashland. The fund also provides exposure to TCF Financial (TCF), PacWest Bancorp (PACW), and CNA Financial (CNA) with respective weights of 1.5%, 1.3%, and 1.2% on June 22.