Analysts’ consensus on Eastman Chemical
The number of analysts tracking Eastman Chemical has been hovering around 16 to 17 analysts. Currently, 17 analysts are actively tracking the stock. Among these analysts, 59% have recommended a “buy,” 41% have recommended a “hold,” and none of the analysts recommended a “sell” on Eastman Chemical.
The analyst consensus target price for EMN is $109.3, which implies a return potential of 3.5% over the closing price as of March 29, 2018. In the past three months, the consensus target price has shown an upward trend and has moved up from $100.56 to the current target price of $109.30, indicating the prevailing bullishness on the stock among analysts.
Eastman Chemical reported strong 4Q17 earnings. It reported adjusted earnings per share of $1.62 and a revenue increase of 8%, which beat Wall Street expectations comfortably. Analysts expect the trend to continue, as EMN has provided strong guidance for fiscal 2018. The company predicts its adjusted earnings per share will grow in the range of 8% to 12%. This explains why many analysts are recommending either a “hold” or a “buy” for Eastman Chemical.
Individual brokerage firm recommendations
- Jefferies has raised the target price of Eastman Chemical to $125, implying a potential return of 18.4% over its closing price of $105.58 as of March 29, 2018.
- Deutsche Bank (DB) has rated Eastman Chemical as a “buy” with a target price of $115, implying a potential return of 9.0% over its closing price as of March 29, 2018.
- Cowen has also recommended a target price of $115 for EMN, which is 9.0% above the closing price as of March 29, 2018.
Investors can indirectly hold Eastman Chemical by investing in the First Trust Materials AlphaDEX ETF (FXZ), which invests 4.0% of its portfolio in EMN. The fund’s top holdings include Owens-Illinois (OI) and Owens-Corning (OC) with weights of 1.4% and 1.8%, respectively.