In a report released today, Salvator Tiano from Bank of America Securities reiterated a Buy rating on Eastman Chemical (EMN – Research Report), with a price target of $93.00.
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Salvator Tiano has given his Buy rating due to a combination of factors that highlight Eastman Chemical’s defensive position within the commodity chemicals sector. Despite concerns about tariffs and their potential impact on earnings, Eastman is seen as the most defensive company in its category, thanks to its diverse business portfolio and unique earnings drivers. The company’s strong balance sheet, with a net debt to EBITDA ratio expected to remain stable, and robust free cash flow provide a solid foundation for potential stock buybacks, reinforcing its defensive nature.
Additionally, while there are risks associated with the Longview methanolysis project, including potential delays in government funding, the company’s commitment to the project and receipt of DOE funds are positive indicators. Although estimates for earnings and EBITDA have been lowered due to ongoing uncertainties, the price objective remains attractive at $93, suggesting a significant upside from the current share price. These factors collectively underpin Tiano’s Buy rating for Eastman Chemical.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $106.00 price target.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EMN in relation to earlier this year.