12 Best Chemical Stocks to Buy According to Analysts

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8) Eastman Chemical Company (NYSE:EMN)

Average Upside Potential: 24.1%

Number of Hedge Fund Holders: 26

Eastman Chemical Company (NYSE:EMN) is engaged in the business of chemicals through advanced materials, additives, specialty chemicals, and fibers, catering to end markets including automotive, construction, consumer goods, and healthcare. BofA has a positive outlook on the company. The firm believes that Eastman Chemical Company (NYSE:EMN)’s growth prospects, mainly in methanolysis, are attractive. The analysts noted the potential for revenue and earnings growth over the upcoming few years, fueled by volume growth that surpasses the company’s end markets and by methanolysis, a chemical recycling process.

Eastman Chemical Company (NYSE:EMN)’s growth strategy revolves around its commitment to circular economy solutions, mainly in plastics recycling. It continues to make progress in its methanolysis technology, which enables the recycling of polyester waste. Furthermore, it also has significant confidence in this new vector of growth, which is expected to create value moving forward. Eastman Chemical Company (NYSE:EMN) is leveraged to a macroeconomic recovery and projects generating significant EBITDA growth via its circular economy initiatives.

The company expects additional EBITDA of more than $500 million by 2029 through such initiatives. This target underlines Eastman Chemical Company (NYSE:EMN)’s commitment to sustainability and its potential to capture a share of the dynamic market for recycled materials. It anticipates generating an incremental $75 million – $100 million of EBITDA contribution in 2025 as compared to 2024 from the Kingsport methanolysis facility.

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