Element Solutions' (ESI) strong electronics demand and improving growth profile create an attractive risk-reward setup for the stock, UBS Securities said.

The brokerage said in a Thursday note that the stock started to re-rate through H1, supported by catalysts like two higher growth acquisitions around electronics and the divestment of slower growth graphics.

The company's earnings setup for 2026 is beatable, and the 2027 consensus could be conservative if robust electronics trends continue, according to the note.

The company's risk/reward skew is attractive at current levels, analysts wrote, adding that they expect adjusted EPS compound annual growth rate of around 17%.

UBS reiterated its buy rating on the stock and adjusted its price target to $47 per share from $49.

Price: 33.28, Change: +0.12, Percent Change: +0.36