Reaffirm Eastman Chemical at Neutral - Analyst Blog
07 Mai 2013 - 4:40PM
Zacks
We have maintained our Neutral
recommendation on chemicals maker Eastman Chemical
(EMN). While the company should benefit from Solutia acquisition
and capacity additions this year, a weak European market remains as
overhang.
Why Maintained?
Eastman Chemical’s first-quarter 2013 results, reported on Apr 25,
were a mixed bag with adjusted earnings topping the Zacks Consensus
Estimate while sales missing the same. Revenues rose at a healthy
double-digit clip, driven by the contributions of Solutia
acquisition. The company reaffirmed its earnings guidance for the
full year.
Eastman Chemical’s diversified chemical portfolio, along with its
integrated and diverse downstream businesses remains its strength.
It also benefits from business restructuring and cost-cutting
measures.
The acquisition of Solutia represents a major step in Eastman
Chemical’s strategy to boost its foothold in the emerging markets,
especially in Asia Pacific. Factoring in the synergies of Solutia
acquisition, the company expects a 17%-19% annualized rise in
earnings in 2013.
Eastman Chemical should also benefit from increased capacity
additions. The company is also making progress in its growth
initiatives through its joint venture in China for a 30,000-ton
acetate tow manufacturing facility, which is expected to come
online in third-quarter 2013.
However, uncertainty regarding the timing of a recovery in Europe
remains a concern. Automobile as well as building and commercial
construction markets remain soft in Europe.
Moreover, Eastman Chemical remains exposed to volatility in raw
material costs and weak pricing across specific markets.
Eastman Chemical currently holds a Zacks Rank #3 (Hold).
Other Stocks to Consider
Other companies in the chemical industry that are worth considering
include Shin-Etsu Chemical Co., Ltd. (SHECY),
Celanese Corporation (CE) and FMC
Corp. (FMC). While Shin-Etsu Chemical retains a Zacks Rank
#1 (Strong Buy), both Celanese and FMC hold a Zacks Rank #2
(Buy).
CELANESE CP-A (CE): Free Stock Analysis Report
EASTMAN CHEM CO (EMN): Free Stock Analysis Report
FMC CORP (FMC): Free Stock Analysis Report
SHIN-ETSU CHEM (SHECY): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
Shin Etsu Chemical (PK) (USOTC:SHECY)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Shin Etsu Chemical (PK) (USOTC:SHECY)
Historical Stock Chart
Von Jun 2023 bis Jun 2024
Echtzeit-Nachrichten über Shin Etsu Chemical Company Ltd (PK) (OTCMarkets): 0 Nachrichtenartikel
Weitere Shin-etsu Chemical Co., Ltd. (PC) News-Artikel