Jefferies Reiterates Buy on Eastman Chemical (EMN)
- Futures fall on Trump's protectionist address
- Qualcomm (QCOM) Calls Apple's (AAPL) Claims 'Baseless'
- Unease over Trump sends dollar to one-and-half month low
- Kate Spade (KATE) Said to Attract Interest from Coach (COH) and Michael Kors (KORS) - Bloomberg
- European stocks fall, investors seek safety after Trump address
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Jefferies reiterated a Buy rating and $88.00 price target on Eastman Chemical (NYSE: EMN). The concerns for an auto end market cooldown remain, but market share gains should help Advanced Materials add $0.02 to EPS in Q3. Also, with the assumption that oil prices do not retreat below $40/barrel and end-market trends remain tepid, Jefferies expects a 7% EPS rebound in 2017.
Analyst Laurence Alexander commented, "Acetate tow pricing will likely hinder fiber segment EBIT through 2018E, and while methanol prices have improved, Chemical Intermediates weakness should persist into next year. Offsetting these headwinds are share repurchases, cost cuts, propane hedge rolloffs, and market share gains in Advanced Materials. We project an 11% EPS CAGR from 2016E-2018E, and $1.8bn ($12.45/share, or a ~10% yield) in FCF before dividends in 2017E-2018E."
Shares of Eastman Chemical closed at $66.38 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: BMO Capital Upgrades Williams Partners LP (WPZ) to Outperform
- Hilliard Lyons Upgrades BB&T Capital (BBT) to Buy
- Preferred Bank (PFBC) PT Raised to $65 at FBR Capital Following 4Q EPS Beat
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesJefferies & Co
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!