Jefferies: Eastman’s (EMN) Recovery May Accelerate in Late 2025 with Rate Cut Tailwinds

Core Viewpoint - Eastman Chemical Company (NYSE:EMN) is recognized as a potential investment opportunity, particularly due to its strong dividend history and resilience in certain operational segments despite macroeconomic challenges [2][3][5]. Group 1: Price Target and Ratings - Jefferies has revised its price target for Eastman Chemical to $78 from $81 while maintaining a Buy rating on the stock [2]. - The adjustment in price target is attributed to ongoing macroeconomic uncertainty and anticipated demand challenges through the end of 2024 [3]. Group 2: Operational Resilience - Eastman Chemical shows resilience in specific segments such as personal care, aerospace and defense, and water treatment [3]. - Despite the overall pressure in cyclical markets, the company is expected to benefit from ongoing cost reductions and the scaling up of methanolysis facilities [4]. Group 3: Future Outlook - Limited signs of broad economic recovery are noted in the near term, but potential tailwinds from interest rate cuts may emerge in the second half of 2025 [4]. - Earnings per share are anticipated to improve due to cost management and operational scaling [4]. Group 4: Dividend Highlights - Eastman Chemical has increased its dividend payouts for 15 consecutive years, demonstrating a strong commitment to shareholder returns [5]. - The current quarterly dividend is $0.83 per share, with a dividend yield of 5.48% as of October 14 [5].