Eastman Chemical To See Balance In Raw Material Costs

Deutsche Bank has published a research report on Eastman Chemical EMN after meeting with the company's CFO which showed how volumes and pricing should offset raw material costs. In the report, Deutsche Bank writes "While Eastman is experiencing higher raw material costs (ethane, propane, paraxylene, wood pulp) in Q4, with volume trends still positive (albeit seasonally lower) and selling price increases being implemented, we believe Eastman is on track to achieve the high end of its Q4 target range of $1.40 $1.50. With Eastman performing at a high level (7 straight upside surprises), last week's sale of the commodity PET business removing a major drag on investor sentiment and valuation an attractive 10.6x '11E EPS and 5.9x '11E EBITDA, we reiterate our Buy." Deutsche Bank reiterates its Buy rating and $100 price target. Eastman Chemical closed yesterday at $80.70.