Goldman Sachs Upgrades Eastman Chemical (EMN) to Conviction Buy

Goldman Sachs added Eastman Chemical (NYSE: EMN) to its Conviction Buy with a price target of $64, suggesting 23% upside, citing leverage to lower propane, SOA value recognition.

The firm notes Eastman Chemical has the most leverage in their coverage universe to propane prices, which are down 10% year-over-year and are expected to stay depressed throughout the year.

Lower propane prices could provide the company with $28 million, or $0.14/share, year-over-year cost benefit in 1Q2012.

PPG Industries' (NYSE: PPG) positive pre-announcement also bodes well for Eastman Chemical's coating materials businesses the firm notes.

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 $52.08 yesterday.

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