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 research report issued to clients and investors on Wednesday.
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.”
A number of other equities research analysts also recently issued reports on the company. TheStreet upgraded Eastman Chemical from a “hold” rating to a “buy” rating in a research note on Friday, November 11th. Jefferies Group restated a “buy” rating and set a $88.00 price target on shares of Eastman Chemical in a research note on Monday, November 7th. Deutsche Bank AG restated a “buy” rating and set a $80.00 price target on shares of Eastman Chemical in a research note on Monday, October 31st. RBC Capital Markets restated a “sector perform” rating and set a $75.00 price target (up from $70.00) on shares of Eastman Chemical in a research note on Monday, October 31st. Finally, Royal Bank Of Canada boosted their price target on Eastman Chemical from $70.00 to $75.00 and gave the company a “sector perform” rating in a research note on Monday, October 31st. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and nine have issued a buy rating to the company’s stock. Eastman Chemical presently has an average rating of “Hold” and a consensus price target of $77.87.
Eastman Chemical (NYSE:EMN) opened at 76.57 on Wednesday. Eastman Chemical has a 52-week low of $56.03 and a 52-week high of $78.79. The company has a market capitalization of $11.24 billion, a PE ratio of 13.24 and a beta of 1.51. The company has a 50 day moving average of $69.99 and a 200 day moving average of $69.31.
Eastman Chemical (NYSE:EMN) last released its quarterly earnings results on Thursday, October 27th. The company reported $1.86 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.67 by $0.19. The business earned $2.29 billion during the quarter, compared to the consensus estimate of $2.30 billion. Eastman Chemical had a return on equity of 23.59% and a net margin of 9.53%. The business’s quarterly revenue was down 6.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.84 EPS. On average, equities research analysts forecast that Eastman Chemical will post $6.75 earnings per share for the current fiscal year.
Several hedge funds have recently modified their holdings of the company. Boston Advisors LLC boosted its stake in shares of Eastman Chemical by 1,926.9% in the second quarter. Boston Advisors LLC now owns 209,785 shares of the company’s stock valued at $14,244,000 after buying an additional 199,435 shares during the period. Retirement Systems of Alabama increased its position in Eastman Chemical by 434.5% in the second quarter. Retirement Systems of Alabama now owns 405,273 shares of the company’s stock valued at $27,518,000 after buying an additional 329,452 shares in the last quarter. Nisa Investment Advisors LLC increased its position in Eastman Chemical by 18.7% in the second quarter. Nisa Investment Advisors LLC now owns 88,943 shares of the company’s stock valued at $6,039,000 after buying an additional 13,985 shares in the last quarter. Bank of Montreal Can bought a new position in Eastman Chemical during the second quarter valued at $5,213,000. Finally, Creative Planning increased its position in Eastman Chemical by 3.7% in the second quarter. Creative Planning now owns 6,690 shares of the company’s stock valued at $454,000 after buying an additional 237 shares in the last quarter. 81.46% of the stock is currently owned by institutional investors and hedge funds.
Eastman Chemical Company Profile
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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