Dahlman Rose Raises Eastman Chemical PT To $88

According to Dahlman Rose, Eastman Chemical Co. (NYSE: EMN) reported 3Q10 results of $2.33, slightly ahead of pre-announced guidance of $2.20-$2.30 driven by higher sales volumes, higher capacity utilization, and better than anticipated selling prices that more than offset higher raw material and energy costs.

“4Q should be seasonally weaker with the company providing earnings guidance in the range of $1.40-$1.50, excluding about $20-25 MM of severance charges,” Dahlman Rose writes.

“We maintain our Buy rating but have increased our price target to $88, as we expect reduced earnings volatility and margin growth to drive multiple expansion.”

Eastman Chemical currently trades at $77.44.