RBC Capital Trims Price Target on Eastman Chemical (EMN) to $71, Maintains Outperform Rating

Core Viewpoint - Eastman Chemical Company (NYSE:EMN) is recognized as a high-yield dividend stock, appealing to income-focused investors despite facing near-term challenges in demand and market conditions [1][5]. Group 1: Company Performance - RBC Capital has reduced its price target for Eastman Chemical from $74 to $71 while maintaining an Outperform rating, reflecting a cautious outlook based on third-quarter expectations for the chemical sector [2][3]. - The company has consistently increased its dividend for 15 consecutive years, currently offering a quarterly dividend of $0.83 per share, resulting in a dividend yield of 5.34% as of October 21 [5]. Group 2: Industry Insights - Discussions with Investor Relations teams indicate that demand in the chemical industry remained soft during Q3, with subdued building and construction activity impacting new housing starts and existing home sales [4]. - The potential for interest rate cuts may provide some support to the market; however, a weak labor market continues to exert pressure on consumer durables demand [4].