SUZ - Eastman Chemical Exposed To Supply Shortages Especially In Automotive

• While chemical companies tend to be attractive due to substantial intermediate exposures, which are inflation hedged, Eastman Chemical has some exposures that could suffer.
• Automotive will continue to be a beleaguered market upon which they substantially rely for around 25% of EBIT.
• Construction is also a market that is likely to see a turnaround for the worse if product availability continues to remain a problem, which it will for some years.
• You'd be mainly relying on intermediates, the most basic of Eastman's chemical exposures, to maintain results.
• While current multiples are muted, there's nothing really exciting about Eastman right now, and we prefer finding other ways to get exposure in chemicals, commodities and industrials.

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