Eastman Chemical Co. (EMN) Stock Rating Lowered by Zacks Investment Research
Eastman Chemical Co. (NYSE:EMN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Friday.
According to Zacks, “Eastman Chemical’s adjusted earnings for third-quarter 2016 topped the Zacks Consensus Estimate. The company gained from strong growth of its high value products and its cost-reduction actions in the quarter. However, its sales fell year over year on lower pricing, and missed expectations. Eastman Chemical remains focused on cost-cutting and productivity actions amid a challenging operating environment. The company is looking to reduce at least $100 million of costs by the end of 2016. Further, the company should gain from its strategic acquisitions. Eastman Chemical also remains committed to reduce debt and boost shareholder returns leveraging healthy free cash flows. However, Eastman Chemical is faced with significant pricing and competitive pressures, which is expected to hurt its earnings in 2016. Moreover, challenging global economic conditions are affecting demand for some of the company’s products. The company is also exposed to currency translation risk.”
Other research analysts have also recently issued reports about the stock. RBC Capital Markets cut shares of Eastman Chemical from an “outperform” rating to a “sector perform” rating and reduced their price target for the company from $83.00 to $70.00 in a research report on Tuesday, August 2nd. SunTrust Banks Inc. reiterated a “neutral” rating and set a $66.00 price target on shares of Eastman Chemical in a research report on Tuesday, August 2nd. Nomura set a $75.00 price target on shares of Eastman Chemical and gave the company a “buy” rating in a research report on Monday, August 1st. Jefferies Group reiterated a “buy” rating and set a $88.00 price target on shares of Eastman Chemical in a research report on Monday, November 7th. Finally, Deutsche Bank AG reduced their price target on shares of Eastman Chemical from $85.00 to $75.00 and set a “buy” rating on the stock in a research report on Monday, August 1st. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and ten have assigned a buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus price target of $77.80.
Shares of Eastman Chemical (NYSE:EMN) opened at 74.25 on Friday. The stock has a 50 day moving average of $68.06 and a 200 day moving average of $69.45. Eastman Chemical has a 1-year low of $56.03 and a 1-year high of $78.79. The company has a market cap of $10.90 billion, a price-to-earnings ratio of 12.83 and a beta of 1.51.
Eastman Chemical (NYSE:EMN) last posted its quarterly earnings data on Thursday, October 27th. The company reported $1.86 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.67 by $0.19. The company had revenue of $2.29 billion for the quarter, compared to analysts’ expectations of $2.30 billion. Eastman Chemical had a net margin of 9.53% and a return on equity of 23.59%. Eastman Chemical’s revenue for the quarter was down 6.5% compared to the same quarter last year. During the same period in the prior year, the business earned $1.84 earnings per share. Analysts predict that Eastman Chemical will post $6.75 EPS for the current year.
A number of institutional investors have recently made changes to their positions in EMN. Global X Management Co. LLC raised its position in shares of Eastman Chemical by 95.4% in the third quarter. Global X Management Co. LLC now owns 1,538 shares of the company’s stock valued at $104,000 after buying an additional 751 shares in the last quarter. NEXT Financial Group Inc raised its position in shares of Eastman Chemical by 3.0% in the third quarter. NEXT Financial Group Inc now owns 1,713 shares of the company’s stock valued at $116,000 after buying an additional 50 shares in the last quarter. Investment Counselors of Maryland LLC purchased a new position in shares of Eastman Chemical during the third quarter valued at approximately $120,000. Financial Architects Inc raised its position in shares of Eastman Chemical by 8,181.8% in the second quarter. Financial Architects Inc now owns 1,822 shares of the company’s stock valued at $123,000 after buying an additional 1,800 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. raised its position in shares of Eastman Chemical by 22.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,965 shares of the company’s stock valued at $133,000 after buying an additional 361 shares in the last quarter. 81.86% of the stock is owned by institutional investors and hedge funds.
About Eastman Chemical
Eastman Chemical Company (Eastman) is a specialty chemicals company that produces a range of advanced materials, chemicals and fibers. The Company operates through five segments: Additives & Functional Products (AFP), Adhesives & Plasticizers (A&P), Advanced Materials (AM), Fibers, and Specialty Fluids & Intermediates (SFI).
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