In a report released yesterday, Michael Sison from Wells Fargo maintained a Hold rating on Eastman Chemical (EMN – Research Report), with a price target of $100.00.
Michael Sison has given his Hold rating due to a combination of factors surrounding Eastman Chemical’s recent financial performance and forward-looking projections. The company reported a slight year-over-year decline in adjusted earnings per share (EPS) for the first quarter of 2024, although they outperformed Sison’s and the consensus estimates. Despite a dip in yearly revenue, there was a sequential quarterly improvement. Additionally, Eastman Chemical’s adjusted EBITDA and EBITDA margin also surpassed expectations, suggesting a resilient operating efficiency amid market challenges.
The Hold rating is further supported by the company’s second-quarter guidance and full-year expectations, which align closely with analyst estimates. Eastman Chemical anticipates continued volume and mix growth in its specialty segments and improved price-cost dynamics. The full-year guidance indicates a stronger second half of the year, yet with consensus estimates already within the company’s projected range, this might imply limited upside potential. Moreover, Sison’s outlook on the segment-specific EBIT for the full year and the second quarter suggests that while some segments are poised for growth, others may face challenges that could offset these gains, reinforcing the rationale behind a cautious Hold stance.
In another report released on April 19, RBC Capital also maintained a Hold rating on the stock with a $100.00 price target.
EMN’s price has also changed moderately for the past six months – from $69.030 to $96.130, which is a 39.26% increase.
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Eastman Chemical (EMN) Company Description:
Eastman Chemical Co. engages in the provision of specialty chemicals. It operates through the following segments: Additives and Functional Products, Advanced Materials, Chemical Intermediates and Fibers. The Additives and Functional Products segment includes chemicals for products in the transportation, consumables, building and construction, animal nutrition, crop protection, energy, personal and home care, and other markets. The Advanced Materials segment produces and markets its polymers, films, and plastics with differentiated performance properties for value-added end uses in transportation, consumables, building and construction, durable goods, and health and wellness markets. The Chemical Intermediates segment consists of large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support operating segments with advantaged cost positions. The Fiber segment offers cellulose acetate tow for use in filtration media, primarily cigarette filters. The company was founded by George Eastman in 1920 and is headquartered in Kingsport, TN.
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