Eastman Chemical upgraded to Buy from Hold at Jefferies

Jefferies upgraded Eastman Chemical to Buy from Hold with a price target of $125, up from $102. Eastman should generate above-trend earnings growth, higher margins and better return on invested capital over the next three years, the analyst tells investors in a research note. The firm says the company’s 2024 outlook appears conservative, particularly on volumes. Eastman should see significant operating leverage to restocking in durables, electronics and packaging, adds Jefferies. It believes the company’s free cash flow of $7.50 per share in 2024-2026 supports a 3.7% dividend and up to 20% in buybacks or similar acquisitions.