Wells Fargo Starts Eastman Chemical (EMN) at Outperform; Strong Balance Sheet Provides Great Flexibility

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Wells Fargo initiates coverage on Eastman Chemical (NYSE: EMN) with an Outperform. PT range $120-$125.

Wells analyst says, "Our 2011 and 2012 EPS estimates are $9.35 and $10.25,
respectively. We believe Eastman's raw material cost advantage, prudent M&A philosophy, continual capacity expansions to meet growing demand, and specialties portfolio make it well positioned for continued earnings growth. We are also impressed that EMN has posted record earnings despite a lackluster economic backdrop. Our valuation range of $120-125 reflects a 6.5x EV-to-2012 EBITDA multiple, in line with the historical average."

For more ratings news on Eastman Chemical click here and for the rating history of Eastman Chemical click here.

Shares of Eastman Chemical closed at $92.19 yesterday, with a 52 week range of $57.48-$110.72.

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