Bank of America has revised its price target for Eastman Chemical (EMN, Financial), lowering it to $93 from a previous $97, while maintaining a Buy rating on the stock. The adjustment follows a 6% drop in Eastman's share price last Friday. The decline was primarily attributed to disappointing second-quarter guidance and worries over the impact of existing tariffs.
Despite the challenges posed by tariffs and the associated uncertainties, BofA remains optimistic about Eastman Chemical's future. The firm regards Eastman as a robust player in the commodity chemicals sector, highlighting its defensive position despite the ongoing trade tensions. Investors are advised to monitor how these external factors might influence Eastman's performance in the latter half of the year.
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 $104.91 with a high estimate of $125.00 and a low estimate of $87.00. The average target implies an upside of 38.33% from the current price of $75.84. 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 22.81% from the current price of $75.84. 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: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Eastman Chemical Co (EMN, Financial) reported successful operational performance in its methanolysis program, maintaining an 85% yield on DMT feedstock.
- The company is on track to achieve $50 million of EBITDA from manufacturing cost savings for the year.
- Customer engagement remains strong in the Renew segment, with over 100 customers involved, despite economic tensions.
- Eastman Chemical Co (EMN) is making progress in selling rPET, with plans to convert a Tritan line to PET production.
- The company has a strategic focus on cash generation and has reduced capital expenditure to optimize efficiency and effectiveness.
Negative Points
- Eastman Chemical Co (EMN) revised its revenue guidance for the Renew segment due to trade tensions and tariffs impacting consumer durable markets.
- The Fibers segment is experiencing challenges from both tariff-related impacts and persistent destocking by customers.
- Tariffs between the US and China are creating uncertainty, impacting sales and causing customers to delay purchases.
- The company faces a $30 million impact in Q2 due to tariffs, primarily affecting volume rather than direct tariff costs.
- Eastman Chemical Co (EMN) has abandoned its annual earnings guidance due to high uncertainty in the market, focusing instead on cash flow.
