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How Are Analysts Rating Eastman Chemical ahead of 2Q16 Earnings?

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Jul. 11 2016, Published 3:38 p.m. ET

Analyst recommendations

Eastman Chemical (EMN) is expected to announce its 2Q16 earnings on July 28, 2016. In this series, we’ll try to analyze what Eastman Chemical could offer to its shareholders in its 2Q16 earnings. In this part of the series, we’ll see what analysts are recommending for Eastman Chemical.

As of June 30, 2016, Eastman’s consensus 12-month target price was $80.50, indicating a return potential of ~18.6% from its closing price of $67.90 on June 30, 2016. There are 15 brokerage firms tracking EMN stock. Among them, 73% have recommended a “buy” for the stock, and 27% have recommended a “hold.” None of the brokers recommended a “sell.”

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Key recommendations for Eastman Chemical

Many brokerage firms and investment banks revised their target prices for Eastman Chemical after the company announced its 1Q16 earnings on April 28, 2016.

On June 28, Barclays (BCS) rated EMN “equal weight” and lowered the target price from $80 to $75. that implied a one-year return of 10.5% over the closing price of $67.90 as of June 30, 2016. Barclays sighted flat prices of olefins as the main reason for lowering the target price.

On April 28, Morgan Stanley (MS) gave an “equal weight / attractive” to EMN with a one-year price target of $65. That implies a return of -4.3% over the closing price of $67.90 on June 30.

On June 8, Cowen (COWN) gave EMN an “outperform” rating with a price target of $96. That implies a 12-month potential return of 41.4% over the closing price of $67.90 on June 30.

Investors can invest in the Materials Select Sector SPDR ETF (XLB) to indirectly invest in Eastman. The fund has invested ~2.2% of its total holdings in Eastman.

In the next part, we’ll look at Eastman Chemical’s revenue estimates.

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