Mizuho has lifted its 12-month price target for Eastman Chemical Co. (NYSE: EMN) to $75.00 from $68.00 and kept an Outperform rating on the shares. The new target implies roughly an 8.7% potential upside from the stock's most recent price of $68.99. Data from InvestingPro shows Eastman trading at a price-to-earnings ratio of 11.37.
The broker stated that the higher target primarily reflects stronger market and peer multiples, even though Eastman reported weaker-than-expected results for the fourth quarter of 2025. Separately, InvestingPro's proprietary Fair Value model flags the stock as fairly valued and assigns the company an overall financial health rating of "GOOD."
Quarterly results and operating detail
Eastman posted adjusted earnings before interest and taxes (EBIT) of $134 million for the December quarter. That result was below Mizuho's internal estimate of $148 million and also missed the consensus level of $156 million.
Sales were weaker across regions in the quarter. U.S. and Canada sales declined 8% year-over-year, EMEA fell 16%, and both Asia Pacific and Latin America decreased 13.5% versus the prior-year period. On a consolidated basis, volumes dropped 11% and selling prices declined 2% compared with the year-ago quarter.
On the headline earnings line, Eastman reported adjusted earnings per share of $0.75 for the quarter, which matched analyst expectations. Revenue for the period came in at $1.97 billion, below the consensus forecast of $2.03 billion and representing a 12% decrease from the prior-year quarter. Company commentary attributed the revenue decline mainly to an 11% reduction in sales volume and mix and a 2% decrease in selling prices, partly offset by a favorable effect from foreign currency.
Guidance and near-term outlook
For the first quarter of 2026, Eastman provided an adjusted EPS range of $1.00 to $1.20, with a midpoint of $1.10. That midpoint sits below Mizuho's estimate of $1.43 and also under Bloomberg's consensus estimate of $1.31. Management said that macroeconomic uncertainty remains significant enough that it would not provide full-year guidance at this time.
Market performance and context
Eastman shares have declined 22.11% over the past 12 months but have recovered 8.08% year-to-date. The share-price reaction and Mizuho's decision to increase the price target underline a divergence between near-term operating weakness and higher peer or market valuation multiples that the broker used in its target revision.
What to watch next
Investors will likely monitor upcoming macro signals and any additional company commentary that could clarify demand trends, pricing stability, and currency impacts. The disparity between the firm's current-quarter results and the higher valuation assumptions applied by Mizuho points to a reliance on market multiple expansion rather than imminent operational improvement.
Note: InvestingPro figures referenced in this report reflect the metrics and model output cited by the analyst and company disclosures for fourth-quarter 2025 and first-quarter 2026 guidance.