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Goldman Sachs Gets Bearish on Chemicals Makers (EMN, DOW)

Specialty chemicals makers Eastman Chemical Company ( EMN ) and The Dow Chemical Company ( DOW ) both caught big downgrades on Friday from analysts at Goldman Sachs.

The firm cut its rating on EMN from "Neutral" to "Sell" with an $89 price target, suggesting a 6% upside to the stock's Thursday closing price of $84.02. Goldman noted that chemicals industry demand would likely slow in the second half of 2011.

Meanwhile, the analyst downgraded DOW "Buy" to "Neutral" with a $32 price target (9% upside), also citing slowing demand in coming quarters.

Eastman Chemical shares fell 54 cents, or -0.6%, in premarket trading Friday, while Dow Chemicals shares were off 26 cents or -0.9%.

The Bottom Line

Shares of Eastman Chemical ( EMN ) have a 2.48% dividend yield, based on last night's closing stock price of $84.02. The stock has technical support in the $78-$80 price area. If the shares can firm up, we see overhead resistance around the $90 price level. Shares of Dow Chemical ( DOW ) have a 3.40% dividend yield, based on last night's closing stock price of $29.38. The stock has technical support in the $26 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels.

Eastman Chemical Company ( EMN ) and The Dow Chemical Company ( DOW ) are both rated "Neutral" at this time.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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