JPMorgan downgrades Eastman Chemical stock rating on commodity spreads

JPMorgan has downgraded Eastman Chemical's stock rating to Neutral from Overweight and reduced its price target to $66.00 from $82.00, citing narrowing commodity spreads as the primary reason. Specifically, the propane-propylene spread contracted to approximately $0.02 per pound and the ethylene-ethane spread narrowed to $0.05 per pound, which JPMorgan estimates could reduce annual EBITDA by about $90 million and $55 million, respectively.

Despite these challenges, the company remains undervalued according to JPMorgan's Fair Value assessment, and it offers a 5.3% dividend yield with a GOOD financial health score.

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