Update shared on12 Oct 2025
Fair value Decreased 1.54%Analysts have lowered their price target for Eastman Chemical from $86 to $75, citing expectations of softer revenue growth and a moderately higher discount rate.
Analyst Commentary
Bullish Takeaways
- Bullish analysts continue to maintain a Buy rating on Eastman Chemical, citing confidence in the company's longer-term fundamentals.
- There is an expectation that management will execute operational improvements, which could help offset near-term headwinds and support margin stability.
- Analysts see the current share price as offering attractive value, working from the view that much of the cautious outlook is already reflected in the stock's valuation.
- Potential growth opportunities in specialty materials and sustainable product lines are viewed as key catalysts for future revenue acceleration.
Bearish Takeaways
- Bearish analysts are concerned about softer revenue growth prospects in the near term, leading to the reduction in price target.
- Macroeconomic uncertainty and a more challenging demand environment could weigh on financial performance during the next few quarters.
- An increase in the discount rate is seen by some as a reflection of greater execution risk and persistent cost pressures.
- There is ongoing caution regarding the company's ability to deliver on its growth ambitions while navigating industry headwinds.
What's in the News
- Eastman Chemical Company (NYSE:EMN) has been dropped from the FTSE All-World Index (USD). (Key Developments)
- Toly and Eastman have launched Gemini, the first compact manufactured with Eastman's Cristal One Renew IM812. This marks a milestone for sustainable, luxury cosmetics packaging. The Gemini compact features glass-like clarity, up to 100% certified recycled content through molecular recycling, and full compatibility with existing PET recycling streams. The product will be unveiled at Luxe Pack Monaco. (Key Developments)
- Between April 1, 2025 and June 30, 2025, Eastman repurchased 643,791 shares for $50 million as part of an ongoing share buyback program. This brings total repurchases since 2018 to 32,171,320 shares or 24.84% of outstanding shares. (Key Developments)
Valuation Changes
- Fair Value Estimate has decreased modestly from $76.35 to $75.18, reflecting a more cautious outlook.
- Discount Rate has risen slightly, from 8.69% to 8.93%, indicating a moderate increase in perceived risk.
- Revenue Growth Projection has been reduced from 0.99% to 0.85%, suggesting lowered expectations for near-term expansion.
- Net Profit Margin Estimate has edged up marginally, from 9.46% to 9.50%, implying stable to slightly improved profitability.
- Future P/E Ratio has declined slightly, from 12.03x to 11.93x, which points to a minor adjustment in valuation multiples.
Disclaimer
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