Koppers Holdings (KOP), a specialty chemical company specializing in treated wood products and other
wood preservation chemicals, recently announced its acquisition of Brown Wood Preserving, a regional
utility pole provider. This strategic move has garnered positive attention from analysts, leading to
upgrades in Koppers’s ratings by several sell-side firms.

Analysts anticipate that the acquisition of Brown Wood Preserving will have a positive impact on
Koppers’s financial performance, particularly in fiscal year 2025. Hedge funds, including Singular
Research, a buy-side firm, are expected to show interest in KOP shares, anticipating continued revenue
growth, improved margins, and enhanced EBITDA as the integration of Brown Wood Preserving
progresses.

CEO Leroy Ball highlighted the strategic importance of the acquisition, stating that it aligns with
Koppers’s focus on expanding its utility pole treatment business through both organic and inorganic
means. While the acquisition may not significantly impact 2024 results due to timing and integration
costs, it is expected to contribute to adjusted earnings before interest, taxes, depreciation, and
amortization (EBITDA) of between $315 million and $325 million by 2025.

Given these developments and the positive outlook for Koppers, there is a bullish sentiment on KOP,
particularly above the $45.00-$46.00 range, with an upside target set at $88.00-$90.00. This reflects
confidence in Koppers’s strategic initiatives and its potential for long-term growth and profitability.