Eastman Chemical stays a 'Buy' as Middle East supply issues boost prices and profits

Eastman Chemical is rated a 'Buy' due to supply disruptions in the Middle East that are tightening markets and supporting price increases, especially in Chemical Intermediates. The company expects Q2 earnings per share (EPS) between $1.70 and $1.90, with full-year EPS above $6. Free cash flow supports a 4.3% dividend yield and $150 million in buybacks. While Advanced Materials faces margin pressure and Fibers struggles with tariffs and Middle East exposure, Additives & Functional shows stable growth. The 2024 EPS target is $6.25–$6.75 with a price target of $84, driven by ongoing supply constraints and strong demand.