The global specialty chemicals company has "testable improvement at a discount," Jefferies analyst Laurence Alexander said.
"Over the next 12 to 18 months Eastman's discount to its large-cap peers should narrow as the company integrates Taminco Corp. (TAM) , allays concerns over petrochemical and acetate tow headwinds, and delivers an estimated 8.5% free cash flow yield before dividends," Alexander added.
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Shares of Eastman closed up 6.57% at $80.78 on Friday.
Separately, TheStreet Ratings team rates EASTMAN CHEMICAL CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EASTMAN CHEMICAL CO (EMN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: