Eastman Chemical (EMN): A Lot Of Leverage To Simple Execution - Jefferies

Jefferies analyst, Laurence Alexander, believes that buybacks, portfolio pruning, and mix upgrades are all in play in for Eastman Chemical (NYSE: EMN) 2H16E-2018E as a way to offset limited sales growth (only a 2% CAGR from 2015 through 2019E). The analyst estimates that even a forward multiple of 11x (vs. the current 10.7x 2016E and 9.3x 2017E), Eastman would have a recipe to deliver a 60% total return through the end of 2018E. If the macro deteriorates, FCF at ~7% of sales vs. ~3% in 2010-2012 should provide ballast.

No change to Buy rating or $88 PT.

For an analyst ratings summary and ratings history on Eastman Chemical click here. For more ratings news on Eastman Chemical click here.

Shares of Eastman Chemical closed at $73.71 yesterday.

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• Alphabet (GOOGL) PT Raised to $180 at Jefferies
• Synovus Financial (SNV) PT Lowered to $42 at Piper Sandler