Eastman Chemical: Ramping Up With Solid Price/Cost Trends And Cost-Cutting Initiatives - Analyst Lifts Expectations - Eastman Chemical (NYSE:EMN)

Mizuho analyst Kieran de Brun reiterated a Neutral rating on the shares of Eastman Chemical Company EMN, raising the price target to $84 from $82.
The analyst sees gradual improvement building throughout the year on (i) solid price/cost trends, (ii) cost-cutting initiatives, and (iii) better Fiber results.
FY23 EBITDA is expected to be $1.86 billion, up from $1.73 billion, while FY24 EBITDA is expected to be $2.02 billion, up from $1.9 billion. The analyst raised the price target on higher EBITDA estimates and a lower discount rate.
The company expects FY23 EPS to be $7.95, up from $7.60.
The company is well positioned to ramp throughout the year (albeit at a gradual pace), Kieran notes. De-stocking appears to be mostly complete and Fibers is meaningfully contributing post-restructuring of contracts.
The company now expects to ramp up its molecular recycling facility in Kingsport in the fall (vs. prior expectations for the summer). The analyst expects to see benefits from the facility flowing through in FY24.
These apart, the analyst expects the company's molecular recycling facilities to be a "longer-term competitive advantage and meaningful opportunity" that will continue to grow.
Price Action: EMN shares traded lower by 3.14% at $79.91 on the last check Tuesday.