Update shared on 09 Nov 2025
Fair value Decreased 2.05%Eastman Chemical's analyst price target was adjusted slightly downward by $1.53 to $73.06, as analysts cite a focus on cash generation and persistent end-market sluggishness, even though earnings improvements are expected ahead.
Analyst Commentary
Recent analyst updates on Eastman Chemical reflect a mix of cautious optimism and ongoing concerns related to the company's valuation and execution in a challenging market environment. Adjustments in target prices show subtle shifts in market sentiment along with an expectation for gradual improvement.
Bullish Takeaways
- Bullish analysts highlight anticipated earnings improvement from 2025 onward, supported by cost-saving initiatives and enhanced asset utilization.
- Consistency in Buy ratings points to confidence in the company's longer-term strategic positioning and ability to navigate near-term market headwinds.
- Free cash flow remains solid despite earnings pressures, providing stability in a period of market uncertainty and supporting Eastman Chemical's focus on cash generation.
- Material tailwinds expected in 2026 are viewed as strong enough to offset ongoing sluggishness in end-market demand, which underpins patience among optimistic observers.
Bearish Takeaways
- Several bearish analysts caution that the macroeconomic backdrop and company messaging remain decidedly negative entering the second half of the year.
- Recent slippage in the commodity segment and highly inconsistent performance in industrial end markets raise concerns about the pace and timing of recovery.
- The lack of seasonal strength observed in the second quarter and diminishing hopes for a softer fourth quarter contribute to lowered expectations for near-term outperformance.
- While maintaining Buy ratings, some downward adjustments to price targets reflect diminished confidence in robust near-term growth and highlight the company’s need to balance cash generation with profit improvement.
What's in the News
- Eastman Chemical Company was dropped from several major indices, including the S&P 500, S&P Global 1200, and FTSE All-World Index (USD) (Key Developments).
- The company was added to other indices, such as the S&P 600, S&P 1000, S&P 600 Materials (Sector), and Russell Small Cap Comp Value Index (Key Developments).
- Eastman and Toly launched the Gemini compact, a luxury cosmetics package made with Cristal One Renew IM812. This product features up to 100% certified recycled content and is compatible with existing PET recycling streams. The Gemini compact will debut at Luxe Pack Monaco (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased slightly from $74.59 to $73.06.
- Discount Rate has edged down marginally from 8.83% to 8.80%.
- Revenue Growth projection has risen from 0.82% to 1.30%.
- Net Profit Margin estimate has declined from 9.50% to 9.19%.
- Future P/E ratio forecast is virtually unchanged, moving from 11.80x to 11.78x.
Disclaimer
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