Goldman Sachs Raises Price Target on Eastman Chemical (EMN)

Goldman Sachs is out with a research report this morning, where it reiterates its Buy rating on Eastman Chemical Company EMN; it increased its price target to $84.00, from $76.00. The GS analysts noted that the company recently raised 3Q10 EPS guidance to $2.20-$2.30 from $1.65-$1.75 due to continued strong performance as selling prices remain solid. This outlook reflects high industry utilization rates and a seasonal decline in sales volume being less than expected. The analysts noted that guidance for 3Q10 results includes approximately $0.20 from the partial settlement of an insurance claim related to the previously announced outage at the company's Longview, Texas facility. Goldman continues to view EMN as one if its best “beat-and-raise” stocks and have increased estimates for the company. They noted, “Our $84 (from $76) 12-month price target is based on our SOTP analysis which implies an average EV/EBITDA multiple of 6.0X.”