Barclays Maintains an 'Equalweight' on Eastman Chemical (EMN); Current Valuation is Attractive

Barclays maintains an 'Equalweight' on Eastman Chemical (NYSE: EMN) price target of $46.00.

Barclays analyst says, "Eastman continues to report solid earnings driven by strong pricing. Overall, we continue to be impressed by Eastman's strong pricing power in the face of raw material inflation, which has resulted in better than expected earnings. However, as EMN has continually beat consensus estimates its multiple has shrunk significantly. We understand investors are concerned that some of the commodity profits in EMN could roll over, but with the stock trading at 8.7x next year's EPS estimate, this concern seems overdone. At 75% of the forward multiple of our group average, we think EMN has some room for multiple expansion relative to the chemical universe."

"We have cut our Q4'11 EPS from $0.90 (split adjusted) to $0.80 and our
'12E EPS from $4.75 to $4.59 due to a decline in some of EMN's commodity
spreads. Please note, we have adjusted our EPS and price target to reflect the 2-for-1 stock split on October 4, 2011...We maintain our price target at $46 (split adjusted."

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 $38.00 yesterday.

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