ESI ▲ +0.1% - Element Solutions Inc $ESI int Buy @ Jefferies pt 55 Analyst comments: "Element Solutions, in our view, is one of the best ways to find leverage to the theme of more electronics in more places, rather than to the narrower theme of better chips. While in the near term ESI likely trades on prospects for a cyclical recovery (i.e., how rates affect auto demand), we expect compound growth to be driven by the rollout of "physical AI." We initiate coverage with a Buy rating. We estimate almost two-thirds of sales are to early-cycle markets, which makes growth forecasts for 2027 and 2028 a call on the degree to which the combination of higher rates and oil prices slow the global economy. Our base case is a "muddle through" scenario, with muted global growth and persistent strength in the AI-related industrial sectors. We estimate that a synchronized global recovery scenario could accelerate EPS growth 10%-15% and that a recession clips our forecast by 7%-10%." Analyst: Laurence Alexander Element Solutions gained 0.1% after Jefferies initiated coverage with a Buy rating and a $55 price target, with analyst Laurence Alexander highlighting the company's exposure to the "physical AI" theme and electronics demand growth. The analyst sees two-thirds of ESI's sales tied to early-cycle markets vulnerable to macroeconomic headwinds, but expects long-term compound growth from AI-driven industrial demand under the firm's base-case scenario. 02-SEP-2026 05:17 AM ET