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What Are Analysts’ Saying about Eastman Chemical?

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Analysts’ recommendations for Eastman Chemical

A total of 17 analysts are actively tracking Eastman Chemical (EMN) as of July 5, 2017. Among them, 65% of analysts have recommended “buys” on the stock, while 35% have recommended “holds.” 

No analysts have recommended “sells” on Eastman Chemical.

Analysts’ consensus indicates a target price of $89 for Eastman Chemical, implying a potential return of 6.5% over its closing price of $83.56 as of July 5, 2017.

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Why all the “buys”?

Most analysts are calling Eastman Chemical a “buy” due to its better-than-expected 1Q17 earnings and the upward revision of its adjusted EPS (earnings per share) for 2017. Eastman expects its adjusted EPS to rise 8%–12% in 2017 compared to 2016.

Target prices by brokerage

  • Barclays (BCS) has rated Eastman Chemical as “equal weight” with a target price of $90, implying a potential return of 7.7% over its closing price of $83.56 on July 5, 2017.
  • Deutsche Bank (DB) has rated Eastman Chemical as a “buy” with a target price of $90, implying a potential return of 7.7% over its closing price as of July 5.
  • UBS has a target price of $89 for Eastman Chemical, implying a potential return of 6.5% over its closing price as of July 5.

Investors can indirectly hold Eastman Chemical by investing in the First Trust Materials AlphaDEX ETF (FXZ), which invests 3.4% of its portfolio in EMN. The fund’s top holdings include Owens-Illinois (OI) and Owens-Corning (OC) with weights of 3.8% and 3.5%, respectively.

In the next article, we’ll look at EMN’s latest valuations compared to its peers’.

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