RBC Capital Sees Future Upside Despite Eastman Chemical's (EMN) Q2 Earnings Miss

Eastman Chemical Company (NYSE:EMN) ranks among the best mid-cap materials stocks to buy now. Although it maintained an Outperform rating on the company’s shares, RBC Capital reduced its price target from $91 to $74 for Eastman Chemical Company (NYSE:EMN) on August 5. The update comes after Eastman Chemical’s second-quarter earnings miss which showed a decreased third-quarter forecast of $1.25 in earnings per share for Q3 compared to $1.60 in Q2, mainly as a result of inventory destocking.

Despite existing difficulties, RBC Capital anticipates a “material step-up” in performance the next year, subject to a number of factors, including easing utilization pressures of roughly $75–100 million in the second half of 2025.

The firm also mentioned the full-year benefit from ramped capacity, possible additional cost savings in 2026, and Eastman’s roughly $75 million cost-reduction plan as encouraging indicators for future performance.

Eastman Chemical Company (NYSE:EMN) is a specialty materials company that operates in the US, China, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.