Eastman Chemical price target raised to $100 from $89 at RBC Capital

RBC Capital analyst Arun Viswanathan raised the firm’s price target on Eastman Chemical to $100 from $89 and keeps a Sector Perform rating on the shares as part of a broader research note previewing Q1 results in Commodity Chemicals. Destocking has ended in most chains, but high interest rates and weak demand have persisted, the analyst tells investors in a research note. RBC further notes that it no longer expects three rate cuts from the Fed this year, warning that volume recoveries across consumer, auto, and construction could likely be slower, resulting in companies tempering FY24 guides. The firm adds however that because of the recent $375M DOE grant to build a second U.S. methanolysis plan, it has raised its assumed EBITDA multiple on the stock to 9.5-times from 8.5-times, driving a higher price target.