Morgan Stanley Initiates EMN At Overweight

Morgan Stanley is initiating coverage of Eastman Chemical Company (NYSE: EMN) at Overweight. The stock is being added to Morgan Stanley's Best Ideas list.

“We expect consensus forecasts to rise 10-20% in the near term,” Morgan Stanley writes. “Also, we believe Eastman's re-balancing of its portfolio has created a higher-quality business with better returns, which will result in significant multiple expansion.

“EMN's analyst meeting on March 1 is the catalyst we think will drive consensus upgrades and mark the start of the re-rating. Our $110 price target suggests 25% upside potential.”

Eastman Chemical currently trades at $91.47.