Ashland's (ASH) fundamentals appear to be moving in the right direction with a fiscal Q3 beat on accelerating pricing and improved volume momentum without any new operational headwinds, Morgan Stanley said in a Thursday research report.

The brokerage said it boosted its 2026 earnings before interest, taxes, depreciation and amortization forecast to $390 million from $389 million, but lowered its 2027 guidance to $425 million from $439 million.

The company's strategic formation of the capital allocation advisory committee could drive better execution due to heightened oversight, which could ultimately support future earnings power, according to the note.

The brokerage said it reiterated its equalweight rating on the stock and boosted its price target to $78 per share from $58.

Price: 72.12, Change: +0.42, Percent Change: +0.59