Analyst Michael Sison of Wells Fargo maintained a Buy rating on Eastman Chemical, reducing the price target to $70.00.
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Michael Sison has given his Buy rating due to a combination of factors that suggest a positive outlook for Eastman Chemical despite current challenges. The company is experiencing a temporary setback due to excess inventory and weaker than expected demand, which has led to a reduction in earnings estimates for 2025. However, Sison believes that these issues are transitory and that the company’s earnings power is fundamentally stronger than what is reflected in the current trough.
Looking ahead, Sison anticipates a more favorable environment for Eastman Chemical in 2026 as inventory destocking is expected to be completed by the end of 2025, potentially leading to EPS growth. Additionally, the stock’s valuation has become more attractive following a selloff, now trading below its historical range. This presents a compelling risk/reward scenario, justifying the Buy rating despite the near-term headwinds.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $79.00 price target.