KeyBanc lowers Eastman Chemical stock price target to $79 on demand concerns

Published 04/08/2025, 16:00
KeyBanc lowers Eastman Chemical stock price target to $79 on demand concerns

Investing.com - KeyBanc Capital Markets lowered its price target on Eastman Chemical (NYSE:EMN) to $79.00 from $93.00 on Monday, while maintaining an Overweight rating on the stock. According to InvestingPro data, the stock appears undervalued, trading at an attractive P/E ratio of 8.34x with a substantial 5.65% dividend yield.

The research firm cited demand uncertainty as a key factor in its decision, noting it had cut its 2025 EPS estimate by 18% compared to its previous forecast.

KeyBanc characterized this reduction as "one of the more sizable declines through a treacherous 2Q earnings season for commodity/hybrid chemical names."

Since July 1, Eastman Chemical has been the worst performer in KeyBanc’s coverage universe, underperforming significantly with a 25% decline compared to the S&P 500’s 1% gain during the same period.

Despite the reduced price target, KeyBanc maintained a positive outlook, suggesting the current situation "creates an attractive opportunity over the next 6-12 months as demand shocks ease." Technical indicators from InvestingPro support this view, with RSI readings suggesting the stock is in oversold territory. Discover 10 more exclusive ProTips and comprehensive analysis in the Pro Research Report.

In other recent news, Eastman Chemical Company reported its Q2 2025 earnings, which fell short of analyst expectations. The company announced an earnings per share (EPS) of $1.60, missing the forecasted $1.73. Additionally, Eastman Chemical’s revenue came in at $2.29 billion, slightly under the anticipated $2.30 billion. These results have attracted attention from analysts and investors alike, as earnings and revenue are critical indicators of the company’s financial health. The earnings miss has prompted discussions among analysts, with some firms potentially reconsidering their ratings. These developments are part of the broader landscape of recent financial disclosures. The focus remains on how Eastman Chemical will navigate these results moving forward.

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