Eastman Chemical (EMN) Downgraded to Sector Perform with $70 Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Rating Downgrade: RBC Capital downgraded Eastman Chemical from Outperform to Sector Perform with a $70 price target, indicating the stock is fairly valued amid ongoing weak demand for durables and sustainable products.
- Weak Demand Impact: The analyst highlighted that Eastman's advanced materials segment is suffering from weak durables demand and low asset utilization, leading to a 3% reduction in the 2026 methanolysis earnings estimate to $364 million.
- Investment Delays: Due to the underperformance of the recent Kingsport ramp-up, new project capital investments are likely to be pushed out, reflecting a cautious outlook on future growth opportunities in a challenging market environment.
- Earnings Outlook: While the additives and functional products unit remains relatively stable with a projected 4% EBIT increase to $532 million in 2026, the chemical intermediates segment continues to face spread challenges, suggesting a weak overall outlook.
Analyst Views on EMN
Wall Street analysts forecast EMN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EMN is 73.11 USD with a low forecast of 68.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 70.230
Low
68.00
Averages
73.11
High
80.00
Current: 70.230
Low
68.00
Averages
73.11
High
80.00
About EMN
Eastman Chemical Company is a global specialty materials company that produces a range of products found in items people use every day. Its segments include Advanced Materials (AM), Additives & Functional Products (AFP), Chemical Intermediates (CI), and Fibers. The AM segment produces and markets polymers, films, and plastics with differentiated performance properties for value-added end-uses in transportation; durables and electronics; building and construction; medical and pharma, and consumables end-markets. AFP segment manufactures materials for products in food, feed, and agriculture; transportation; water treatment and energy; personal care and wellness; building and construction; consumables, and durables and electronics end-markets. The CI segment sells intermediates for end-markets, such as industrial chemicals and processing, building and construction, health and wellness, and food and feed. Its Fibers segment manufactures and sells acetate tow and triacetin plasticizers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
