Atlantic Investment's Roepers recommends chemical company Huntsman at Delivering Alpha conference; shares jump

  • The Woodlands, Texas-based company is a manufacturer of differentiated organic chemical products and of inorganic chemical products.
  • Shares jumped on the recommendation and were most recently up nearly 2.5 percent after rising 4 percent earlier.

Alex Roepers of Atlantic Investment Management recommended Huntsman Corp. as his best idea Wednesday during the Delivering Alpha conference.

The Woodlands, Texas-based company is a manufacturer of differentiated organic chemical products and of inorganic chemical products.

Shares jumped on his recommendation and were most recently up nearly 2.5 percent after rising 4 percent earlier.

Roepers said that as the company has discharged some parts of its operations it has grown more efficient and should provide handsome returns, which he set as up to 60 percent over the next 12 to 18 months.

"The key thing that has happened here at Huntsman is it's a new company," he said in remarks at the Delivering Alpha conference, presented by CNBC and Institutional Investor.

Huntsman has the potential to earn $4.40 a share, accounting for the upside price potential that Roepers cited.

He also said the company is a potential takeover target as well as an acquirer, though he expects it to return cash to shareholders in the meantime.

"Over time I think they made it loud and clear they want to make acquisitions," Roepers said. "I have a lot of faith in management doing the right thing with cash balances, cash flows that are coming."

Previous Years

  • CNBC and Institutional Investor hosted the 7th Annual Delivering Alpha Conference on September 12, 2017.

  • Delivering Alpha 2017 stage, signage

    Meet the 2017 advisory board of Delivering Alpha, which takes place on September 12, 2017 at The Pierre in New York City.

  • The stage at Delivering Alpha 2016 in New York on Sept. 13, 2016.

    CNBC and Institutional Investor hosted the 6th Annual Delivering Alpha Conference on September 13, 2016.

About

CNBC and Institutional Investor are pleased to host the 8th Annual Delivering Alpha Conference in New York City on July 18, 2018. Please take note of the new month for 2018. Delivering Alpha continues to be an incomparable who’s who of the investor community with leading asset manager and institutional investors offering candid views along with illustrious political and economic commentators appearing in short segments moderated by CNBC talent and II editors.

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