Eastman Chemical (EMN -3.7%) is downgraded to Hold from Buy at Gilford Securities based on...


Eastman Chemical (EMN -3.7%) is downgraded to Hold from Buy at Gilford Securities based on valuation and a belief that the Solutia acquisition was expensive. The firm thinks 10x EBITDA is a full price for a business that has been put through a cost-cutting wringer, making $100M in cost synergies by year-end 2013 look ambitious, and that gets most of its earnings from one product.

Comments (1)
  • Thomas Azzara
    , contributor
    Comments (453) | Send Message
     
    EMN is overpriced. I never liked the Solutia acquisition. I owned EMN at 35 in Dec. 2011 (sold at $46) but the current earnings growth rate looking forward is not "exciting" enough to consider this stock at a price of $50/$58 a share. Furthermore, EMN is not likely to grow through acquisitions any longer. It's eaten its last meal.
    8 Oct 2012, 04:24 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs