Jefferies analyst Laurence Alexander maintained a Buy rating on Eastman Chemical (EMN – Research Report) on April 26 and set a price target of $95.00.
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Laurence Alexander’s rating is based on a combination of factors that suggest a promising outlook for Eastman Chemical despite some challenges. The company’s Q1 earnings per share (EPS) exceeded both consensus and Jefferies’ forecasts, indicating strong performance in certain segments like Advanced Materials and Additives & Functional Products. However, the Fibers segment faced difficulties due to destocking, and macroeconomic uncertainties are expected to impact demand in several end markets.
Despite these challenges, Eastman Chemical’s strategic initiatives, such as cost-cutting measures projected to save $75 million, and a focus on maintaining stable demand in medical and agricultural sectors, provide a positive outlook. Additionally, while the 2025 operating cash flow projection has been reduced, the company’s ability to manage costs and adapt to market conditions supports the Buy rating. The potential for improved inventory management and the company’s significant sales presence in China further contribute to the optimism surrounding Eastman Chemical’s stock.
Alexander covers the Basic Materials sector, focusing on stocks such as Eastman Chemical, Ecolab, and FMC. According to TipRanks, Alexander has an average return of -3.5% and a 43.18% success rate on recommended stocks.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $93.00 price target.