Eastman Chemical Co.'s (NYSE:EMN - News) fourth-quarter revenues rose 18% year over year to $1.7 billion, driven by increased selling prices and higher sales volumes. The company expects to face certain headwinds in the first half of 2012, but anticipates that there will be more economic activity in the second half of 2012, particularly in the Asia-Pacific and North American regions.
The company expects earnings per share from continuing operations in 2012 to be higher than that of 2011. Eastman Chemical expects to deliver strong results and looks forward to benefit from the recent capacity additions as well as the Sterling and Scandiflex acquisitions.
We, therefore, upgraded our recommendation to Outperform from Neutral with a target price of $65.00. Our $65.00 target price, 13.2x the 2012 EPS, reflects our Outperform view.
EASTMAN CHEM CO (EMN): Free Stock Analysis Report
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