UBS has adjusted its price target for Eastman Chemical (EMN, Financial), reducing it from $115 to $111. Despite this revision, the firm maintains a Buy rating on the company's shares. This decision comes after Eastman Chemical issued a less optimistic guidance for the second quarter, primarily due to ongoing challenges related to tariffs. The analyst expressed this view in a recent research note to investors, highlighting the impacts these challenges may have on the company's financial performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Eastman Chemical Co (EMN, Financial) is $106.91 with a high estimate of $125.00 and a low estimate of $90.00. The average target implies an upside of 32.28% from the current price of $80.82. More detailed estimate data can be found on the Eastman Chemical Co (EMN) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Eastman Chemical Co's (EMN, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Eastman Chemical Co (EMN, Financial) in one year is $93.14, suggesting a upside of 15.24% from the current price of $80.82. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Eastman Chemical Co (EMN) Summary page.
EMN Key Business Developments
Release Date: January 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Eastman Chemical Co (EMN, Financial) demonstrated strong recovery in its Advanced Materials segment, with significant growth driven by innovation and strategic initiatives.
- The company has successfully managed cost reductions, which are expected to contribute positively across all segments, enhancing competitiveness.
- Eastman Chemical Co (EMN) has secured multi-year contracts in its Fibers segment, providing stability and visibility into future revenues.
- The Kingsport methanolysis plant has shown operational improvements, positioning it for strong operating leverage in 2025.
- The company is well-positioned to benefit from its circular economy initiatives, with significant growth expected in the back half of the year.
Negative Points
- Eastman Chemical Co (EMN) faces headwinds from increasing natural gas prices and currency fluctuations, impacting its Advanced Materials segment.
- The macroeconomic environment remains challenging, with weak demand and inflation affecting customer purchasing decisions.
- There is a potential risk of trade tensions and tariffs impacting the company's export markets, although the exact impact is uncertain.
- The Fibers segment is experiencing normalization due to inventory destocking and product changes, which could impact margins.
- Higher cash taxes are expected to offset EBITDA growth, resulting in flat operating cash flow for 2025 compared to the previous year.
