UBS Upgrades Eastman Chemical (EMN) to Buy

UBS analyst Joshua Spector upgraded Eastman Chemical (NYSE: EMN) from Neutral to Buy with a price target of $128.00 (from $106.00).

The analyst comments: "We come full circle on our EMN thesis, upgrading to Buy as we believe: 1) 1Q earnings provided evidence that EMN's 2024 expectations are conservative (13% EPS beat - link), 2) see higher growth into 2025 w/ upside risk on restocking, and 3) see adv. plastics recycling investments additive to earnings/growth. EMN volumes are down ~10% vs 2021 (~5% below 2019), & we see volume leverage driving significant earnings growth over the next two years. Following ~2 years of no EPS growth, we expect this to inflect , with 2H24 EPS up >50% Y/Y, leading to a ~14% CAGR over the next 4 years. Our 2025/26 EPS est's are ~5-7% above consensus. We expect the stock to grind higher w/earnings, & re-rating potential as plastics recycling investments gain traction."

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 $99.42 yesterday.

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