IVL shares fell 8.71% after Morgan Stanley downgraded the stock from Overweight to Underweight and cut its target price to 19.00 baht from 26.90 baht. The firm sees structural problems weighing on the company's return on invested capital, which it expects to be around 2% in 2027, below peers, even if the petrochemical industry shows signs of recovery. The financial position remains a drag, with the net debt-to-equity ratio forecast to stay high at 173% in 2027, and most cash flow used for interest payments and maintenance capex, making deleveraging slow. Morgan Stanley also lowered its 2026–2027 EBITDA estimates by 26% and cut earnings per share forecasts by 37% and 51% respectively, citing higher costs, weak PET demand, and increased capital expenditure.
Indorama Ventures PCLMorgan Stanley downgraded IVL to Underweight and cut target price, citing structural problems, high debt, and lowered earnings estimates.