Eastman Chemical Gains 3.38% Amid 41.64% Volume Drop to 434th Market Liquidity Rank as Analysts Trim Price Targets but Maintain Overweight/Buy Ratings Citing 8.3x P/E and 5.65% Yield

Eastman Chemical (EMN) rose 3.38% on August 4, 2025, with a trading volume of $0.25 billion, a 41.64% decline from the previous day, placing it 434th in market liquidity. Analyst activity intensified as KeyBanc Capital Markets reduced its price target to $79 from $93, maintaining an Overweight rating, citing demand uncertainty and a 18% downward revision to 2025 EPS estimates. Citigroup similarly adjusted its target to $68 from $90 while retaining a Buy recommendation. Both firms highlighted the stock’s undervaluation, with a P/E ratio of 8.34x and a 5.65% dividend yield.

The company’s Q2 2025 earnings report underscored near-term challenges. Earnings per share fell to $1.60, below the $1.73 forecast, while revenue of $2.29 billion narrowly missed the $2.30 billion estimate. Analysts noted the results could prompt rating revisions, with KeyBanc emphasizing the stock’s potential rebound as demand pressures ease. Despite the earnings miss, technical indicators suggest oversold conditions, offering a potential entry point for long-term investors.

A backtested strategy of holding high-volume stocks for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights liquidity-driven momentum as a key factor in short-term performance, particularly in volatile sectors like chemicals.