02:00 PM EDT, 05/23/2024 (MT Newswires) -- Eastman Chemical's ( EMN ) 2024 expectations are conservative after Q1 adjusted earnings topped estimates by analysts, UBS Securities said Thursday in a note.

The company's 2024 guidance "is predicated on stable volumes, but a market reconnection (or restocking) could drive upside," UBS said.

Advanced plastics recycling investments may add to company earnings, UBS said.

The company's first Polyester Renewal Technology facility, which started up in Q1, may add $165 million in EBITDA over the next two years, UBS said.

"We expect the stock to grind higher with earnings, and re-rating potential as plastics recycling investments gain traction," UBS said.

UBS upgraded Eastman to buy from neutral and boosted the price target to $128 from $106.

Eastman shares fell 0.4% in recent trading Thursday.

Price: 99.05, Change: -0.37, Percent Change: -0.37