Mizuho raised its rating on Eastman Chemical (NYSE:EMN) from Neutral to Outperform, assigning a new price target of $105, suggesting an upside potential of roughly 27% from current levels.

The upgrade comes as Eastman’s forward earnings trajectory continues to climb, distinguishing it from peers in the basic chemicals sector, where forecasts have been more muted. Mizuho credits this strength in part to Eastman's strategic asset base — with approximately 80% of operations located in the U.S., the company benefits from a meaningful domestic cost advantage.

Eastman also boasts a highly diversified downstream product portfolio, with nearly 80% of sales coming from value-added offerings across various sectors — no single market contributes more than 10% to revenue, with global automotive films being one of the larger segments.

Additionally, Mizuho highlighted progress in Eastman’s circular plastics initiative, which has begun transitioning from early-stage losses to modest profitability. This shift, along with steady earnings momentum and geographic cost leverage, positions the company for sustained outperformance in the months ahead.