- Eastman Chemical (EMN +1.7%) is higher even as CLSA downgrades shares to Underperform from Buy following mixed Q1 results.
- The firm recommends taking profits in EMN given disappointing company guidance, an anemic global economy, potential ethylene oversupply, and a difficult market for selling ethylene assets.
- However, Jefferies maintains its Buy rating and raises its price target to $88 from $85, believing 2016 difficulties should not carry into 2017 thanks to an improved product mix from the Tritan, acoutistic interlayer and performance film platforms.
- EMN said it still targets FY 2016 adjusted earnings “that approach” last year’s $7.28/share in adjusted profit; the consensus analyst outlook is for $7/share for 2016.
- Now read Eastman Chemical has further upside