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Jefferies Raises Price Target on Eastman Chemical (EMN) Following 1Q EPS Beat

May 2, 2016 9:21 AM EDT
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Price: $100.22 +0.64%

Rating Summary:
    12 Buy, 17 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Jefferies reiterated a Buy rating on Eastman Chemical (NYSE: EMN), and raised the price target to $88.00 (from $85.00), following the company's 1Q earnings report. EMN reported Q1 EPS $0.26 above forecasts. 2016 estimates should benefit from ~$0.50 in net cost reductions and ~$0.25 from M&A synergies, whereas the F/X and propane dynamic should be roughly neutral YoY. The difficulties in 2016 should not carry into 2017 as Jefferies expects an improved product mix from the Tritan, acoutistic interlayer, and performance film platforms.

Analyst Laurence Alexander commented, "Pegging the outlook to ~$40 oil, current methanol prices, and limited demand improvement might be prudent, but leads to a very cautious stance on the balance of 2016. Exposure to the weaker parts of the olefins chain (i.e. no PE, no PP) and ongoing tow weakness doesn't help. Buybacks, portfolio pruning, and mix upgrades are all in play in 2H16E-2018E."

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 $76.38 yesterday.



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