Eastman Chemical (EMN – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Vincent Andrews from Morgan Stanley maintained a Buy rating on the stock and has a $125.00 price target.
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Vincent Andrews has given his Buy rating due to a combination of factors surrounding Eastman Chemical’s strategic positioning and growth potential. The company anticipates growth in several stable end markets, such as agriculture and personal care, driven by consistent demand for products like amines used in detergents. Additionally, Eastman’s focus on innovation within its interlayers business is expected to maintain high margins by keeping products specialized, such as those used in automotive applications like heads-up displays.
Furthermore, Eastman’s Advanced Materials segment is projected to see a significant EBITDA improvement, with expectations of $50-75 million in growth. This improvement is supported by robust EBITDA margins on incremental sales. Despite certain projects being on hold, such as the methanolysis project in France, Eastman’s strategic approach in developing its operations and focusing on high-margin innovations supports the positive outlook and the Buy recommendation.
In another report released on February 3, Bank of America Securities also reiterated a Buy rating on the stock with a $112.00 price target.
Based on the recent corporate insider activity of 54 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.