Latest news with #JeffreyJ.Zekauskas
Yahoo
28-04-2025
- Business
- Yahoo
JP Morgan Cautions Trade Tensions Are Weighing On Eastman Chemical Growth Prospects
JP Morgan analyst Jeffrey J. Zekauskas downgraded the rating for Eastman Chemical Company (NYSE:EMN) from Overweight to Neutral and cut the price forecast from $112.00 to $76.00. On April 25, the company reported first-quarter adjusted EPS of $1.91, beating the $1.89 estimate, while sales of $2.29 billion missed the $2.33 billion estimate. For the second quarter, Eastman anticipates adjusted EPS of $1.70-$1.90, below the consensus estimate of $2.18. The company expects a slight sequential volume increase across its markets in the second quarter, but it is less than typical due to trade uncertainty. Additionally, second-quarter earnings are expected to be negatively impacted by U.S.-China tariffs and increased planned maintenance. The analyst remarks that typically, Eastman sees a second-quarter volume and earnings increase due to seasonal construction. Zekauskas writes that tariffs haven't directly impacted Eastman's operations because customers are currently using material already within the country. Further, the analyst says that sustained difficult trade conditions could increase near-term earnings risk and diminish longer-term growth prospects. The analyst estimates the company's specialty polymer sales to China to be ~$340 million, generating ~$100 million in EBITDA. While Eastman forecasts $1.2 billion in 2025 cash flow from operations, this may be aggressive given the $167 million cash use in the first quarter, adds the analyst. Consequently, the analyst lowered the EPS estimate to $7.40 (from $8.45) for 2025 and $7.80 (from $9.00) for 2026. Considering current conditions, a further ~$1.00/share reduction to the base case 2025 earnings range ($7.00-$7.75) seems appropriate, adds the analyst. Zekauskas adds that this could potentially reflect less pressure on the second half of 2025 filter tow earnings as destocking effects ease. Price Action: EMN shares are down 0.84% at 475.20 at the last check Monday. Read Next:Photo via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? EASTMAN CHEMICAL (EMN): Free Stock Analysis Report This article JP Morgan Cautions Trade Tensions Are Weighing On Eastman Chemical Growth Prospects originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
26-04-2025
- Business
- Yahoo
Orion Stock Has Limited Upside Amid Uncertain Economic Backdrop: JP Morgan
JP Morgan analyst Jeffrey J. Zekauskas downgraded Orion S.A. (NYSE:OEC) from Overweight to Neutral and revised the price forecast from $18 to $12. The analyst writes that he views Orion as fairly valued, trading at an estimated EV/EBITDA multiple of 5.2x for 2025 and 4.6x for 2026. However, ongoing economic uncertainty adds an element of valuation risk Cabot, Orion's peer, currently trades at a 1.3x EBITDA multiple premium compared to Orion, adds the views this valuation gap as being within a normal range, suggesting limited room for further multiple expansion for Orion. The analyst's earnings outlook remains unchanged and expects some stabilization in Orion's rubber black segment in 2025 following two years of declines, along with a volume recovery in the specialty carbon black business. The analyst projects free cash flow yield to reach 15% in 2026, driven by significantly reduced capital expenditures following the conclusion of a La Porte expansion project. The company plans to release the first quarter 2025 results on May 7, 2025. Price Action: OEC shares are down 0.29% at $12.20 at the last check on Thursday. Read Next:Image Via Shutterstock Date Firm Action From To Jan 2022 UBS Maintains Buy Aug 2021 Barclays Maintains Underweight Jun 2021 JP Morgan Upgrades Neutral Overweight View More Analyst Ratings for OEC View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? ORION (OEC): Free Stock Analysis Report This article Orion Stock Has Limited Upside Amid Uncertain Economic Backdrop: JP Morgan originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
