Kingsport, Tennessee-based Eastman Chemical Company (EMN) is a global specialty materials company that produces a range of products found in everyday items. With a market cap of $9.5 billion, the company operates through Additives & Functional Products, Advanced Materials, Chemical Intermediates, and Fibers segments.
Shares of EMN have lagged behind the broader market over the past 52 weeks. EMN stock has tumbled 18.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 9.8%. Moreover, shares of EMN are down 10.8% on a YTD basis, compared to SPX’s marginal dip.
Looking closer, Eastman Chemical has also underperformed the Materials Select Sector SPDR Fund’s (XLB) 6.9% drop over the past year and 2.2% rise in 2025.
Eastman Chemical’s stock fell 6.2% in the trading session after it released its mixed Q1 2025 results on Apr. 24. The company reported revenue of $2.3 billion, down marginally year-over-year, as customer inventory destocking in acetate tow products impacted volumes. However, this was largely offset by increased volumes in the Additives & Functional Products and Chemical Intermediates segments. Selling prices rose, primarily driven by cost-pass-through contracts. Adjusted EPS came in at $1.91, up 18.6% from the prior-year quarter and exceeding analysts’ estimate by 1.1%.
Additionally, for the second quarter of 2025, EMN expects adjusted EPS to range between $1.70 and $1.90.
For the current fiscal year 2025, ending in December, analysts expect EMN's adjusted EPS to decline 7.5% year-over-year to $7.30. However, it has a solid earnings surprise history. EMN surpassed the Street's bottom-line estimates for each of the past four quarters.
Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, two “Moderate Buys,” and six “Holds.”
This configuration is slightly less bullish than a month ago, with nine “Strong Buy” ratings on the stock.
On Apr. 29, Barclays (BCS) analyst Michael Leithead lowered EMN’s price target to $85 while maintaining an “Equal Weight” rating on the stock.
As of writing, Eastman Chemical’s mean price target of $96.88 implies an 18.9% premium to current price levels, while the Street-high target of $125 suggests a staggering 53.4% upside potential.
