1-Star Price
INVESTOR
5-Star Price
INVESTOR
Economic Moat
INVESTOR
Capital Allocation
INVESTOR
On Sept. 13, Eastman management lowered its third-quarter adjusted earnings per share guidance due to lower volumes and continued cost inflation. Having updated our model to reflect weaker near-term demand, we trim our Eastman fair value estimate to $135 per share from $140. Our narrow moat rating is unchanged.
Established in 1920 to produce chemicals for Eastman Kodak, Eastman Chemical has grown into a global specialty chemicals with manufacturing sites around the world. The company generates the majority of its sales outside of the United States, with a strong presence in Asian markets. During the past several years, Eastman has sold noncore businesses, choosing to focus on higher-margin specialty product offerings.
