UPDATE: Citigroup Upgrades Eastman Chemical to Buy; Solutia Acquisition Accretive and Transformative

Citigroup raises its rating on Eastman Chemical EMN from Neutral to Buy and increases its price target from $46 to $57. Citigroup comments, "EMN closed on the $4.8B merger with Solutia for $22 cash and 0.12 shares for each outstanding Solutia share, representing a ~9x EV/EBITDA multiple. Solutia is a true “specialty” chemical company with unique products for the auto and architecture industries, both of which seem to be recovering. This is evidenced by Solutia's 2011 EBITDA margin of ~25% compared to the industry average of ~17%." EMN closed at $49.72 on Monday.