UPDATE: Deutsche Bank Reiterates, Lowers PT on Eastman Chemical Company on Weak Q3 Release, Positive Outlook
In a report published Monday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on Eastman Chemical Company (NYSE: EMN), but lowered the price target from $100.00 to $95.00.
In the report, Deutsche Bank noted, “Eastman shares fell 5% following a weak Q3 release as '13 EPS guidance was lowered by $0.10 to $6.30-$6.40, implying Q4 EPS of $1.25 (mid-point) vs consensus of $1.42, The $0.17, or 11%, Q4 shortfall is due to continued challenges in Adhesives & Plasticizers (EBIT guidance cut by 13%) and higher propane costs. Despite the Q4 shortfall, we believe headwinds are largely transitory and Eastman's transformation to a more predictable and stable earnings generator post the Solutia acquisition remains intact. As Eastman validates this transformation in '14, its ~15% discount to differentiated chemical peers should close. With valuation a compelling 11.1x 14E EPS, Buy.”
Eastman Chemical Company closed on Friday at $77.94.
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