Deutsche Bank Says Eastman Chemical Investor Day Exceeds Expectations

In a report published by Deutsche Bank, Eastman Chemical's EMN investor day exceeded expectations. Deutsche reported that the Q1 and 2011 guidance has been raised and a solid 2013 EPS target of $10/share. “Eastman's investor meeting exceeding expectations with the raising of Q1 guidance by 11% (and a similar 11% above consensus), the raising of 2011 guidance by 4% to $8.00 (1% above consensus), the establishment of a 2013 EPS target of $10/shr (13% CAGR 2010-13), the announcement of an acetate tow JV in China, a market Eastman has up till now only accessed thru imports, and the announcement of a breakthrough technology in treated wood with $500MM in potential sales in 2015-16. With valuation a compelling 5.8x ‘11E EBITDA, Buy.” Eastman Chemical closed yesterday at $93.13.