JPMorgan analyst Jeffrey Zekaukas upgraded Eastman Chemical (NYSE: EMN) from Neutral to Overweight with a price target of $80.00 (from $70.00).

The analyst comments: "We think that changes in commodity prices should benefit Eastman’s EBITDA beginning in the June quarter. The price of ethylene has moved up from $0.185 per pound pre-conflict to $0.335/lb, and Eastman produces about 1.1b lbs of ethylene annually. The price of propylene has increased from $0.335/lb pre-conflict to $0.615/lb. Eastman makes about 500m lbs of propylene and buys about 500m lbs of propylene on a cost-plus basis to make derivative products. We estimate the annual benefits from ethylene and propylene production to be about $358m after factoring in higher propane costs that increased from $0.65/gallon to $0.80/gallon. A second offset stems from Eastman’s Specialty Plastics business, which buys paraxylene as a raw material. We think that Eastman buys about 325kt of paraxylene for its Specialty Plastics business. Paraxylene costs have been moving up from about $930/t to $1165/ which we think is a ($76m) headwind. We think that the net incremental benefit to Eastman is $282m on an annual basis or about $1.60/share for 2026 and $2.10 on an annual basis."

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Shares of Eastman Chemical closed at $74.01 yesterday.