Analyst Ratings February 2, 2026

KeyBanc Sticks With Overweight on Eastman; $74 Target Reflects Modest Upside

Analyst sees $6 EPS for 2026 as achievable but contingent on execution and demand recovery

By Caleb Monroe EMN
KeyBanc Sticks With Overweight on Eastman; $74 Target Reflects Modest Upside
EMN

KeyBanc Capital Markets reaffirmed an Overweight rating on Eastman Chemical and maintained a $74.00 price target, implying roughly 6.8% upside from the prevailing share price. The firm cited management’s guidance toward about $6.00 earnings per share in 2026 as achievable, while noting execution on productivity initiatives and successful new product introductions will be required. Recent fourth-quarter 2025 results showed EPS in line with expectations but revenue that missed forecasts.

Key Points

  • KeyBanc reiterates Overweight rating on Eastman Chemical and retains a $74.00 price target, implying about 6.8% upside from a $69.32 share price.
  • Management and KeyBanc view approximately $6.00 EPS for 2026 as attainable, consistent with analyst consensus of $6.05 for fiscal 2026.
  • KeyBanc’s base case for 2026 EPS is $5.50 to $5.70, with upside contingent on improving demand or flawless execution of the company’s strategic plan.

KeyBanc Capital Markets has reiterated its Overweight rating on Eastman Chemical and kept a $74.00 price target, a level that the firm says represents about a 6.8% upside from the then-current share price of $69.32.

The brokerage pointed to management commentary and internal analysis suggesting that roughly $6.00 in earnings per share for 2026 is within reach. That figure aligns closely with InvestingPro data reflecting analyst estimates of $6.05 EPS for fiscal 2026.

KeyBanc’s note emphasized that reaching a $6.00 full-year EPS would demand disciplined execution. Specifically, the firm said the outcome hinges on sustained delivery of productivity initiatives and on new product rollouts proceeding without material disruptions. Those operational factors are central to the pathway the analyst outlined.

On a quarterly basis, KeyBanc estimated Eastman would need to generate about $1.80 of EPS by mid-2026 to be on track for the $6.00 annual objective. The firm observed that this quarterly pace is comparable to results seen in the first half of 2025, when volumes were stronger.

In framing its base case, KeyBanc projected 2026 EPS in a range between $5.50 and $5.70. The firm also noted upside to that base case could materialize if market demand improves or if the company executes its strategic plan flawlessly.


Turning to reported results, Eastman Chemical disclosed fourth-quarter 2025 earnings that matched EPS expectations but fell short on revenue. The company reported EPS of $0.75, in line with analysts’ projections, while revenue came in at $1.97 billion versus an anticipated $2.03 billion.

The mixed quarterly outcome — EPS met, revenue missed — is a salient datapoint for investors evaluating Eastman’s near-term financial health and the company’s ability to translate volume or pricing dynamics into top-line performance.

Overall, KeyBanc’s stance reflects cautious optimism: the firm maintains an upbeat rating and a price objective that assumes modest upside, but it qualifies that view with the operational and market prerequisites necessary to hit a $6.00 EPS outcome in 2026.

Risks

  • Achievement of the $6.00 EPS target depends on strong execution of productivity initiatives and successful new product launches without significant disruptions - this is an operational risk affecting industrials and chemicals sectors.
  • Quarterly results must reach about $1.80 EPS by mid-2026 to hit the annual target; failure to replicate first-half 2025 volume levels would undermine the forecast and affect market-facing demand signals.

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