Goldman Sachs Removes Eastman Chemical From America's Buy List; Downgrades To Neutral

Goldman Sachs is removing Eastman Chemical EMN from its Americas Buy List and downgrading it to Neutral since other companies in its coverage, including DuPont DD which it is upgrading to Buy today - offer greater near term upside potential. Since it added EMN to its Americas Buy List on 12/9/2009, the shares have risen 33.3% versus the S&P 500 up 9.2%. Over the last 12 months the stock has risen 32.5% versus the S&P 500 up 7.8%. Over the past year EMN has outperformed the S&P 500 due largely to its successful “beat-and-raise” track record, reporting strong quarterly results ahead of Goldman's and consensus estimates on the back of a strong volume recovery in cyclical end markets, solid operating leverage, and favorable pricing trends. While EMN is on track to deliver EPS greater than $7 for 2010, Goldman see less upside to its 2011/12 EPS numbers than at other peers. Downside risks include rising energy and raw material costs, particularly for paraxylene. Upside risks include stronger than expected underlying demand and rising prices. EMN closed Thursday at $78.96