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Investing.com - CFRA has lowered its price target on Celanese (NYSE:CE) to $30.00 from $37.00 while maintaining a Sell rating on the chemical company’s stock. According to InvestingPro data, the stock has declined over 61% in the past year, though analysis suggests the company is currently trading below its Fair Value.
The research firm cited Celanese’s high debt levels, which increased during the first and second quarters of 2025, as a key factor in the decision. InvestingPro data shows a concerning total debt to capital ratio of 0.7, though the company maintains a healthy current ratio of 2.05. CFRA also pointed to tariff concerns that are pressuring demand and ongoing margin contraction.
Despite generating $311 million in free cash flow in the second quarter, Celanese deployed $200 million toward debt reduction, with an additional $150 million allocated since the quarter closed. The company’s management has stated intentions to increase cash generation to support earnings growth and balance sheet deleveraging. InvestingPro indicates a strong free cash flow yield of 10%, with several additional positive indicators available to subscribers.
CFRA described Celanese’s debt burden as "unsustainable" and called it a "dangerous investment in a deteriorating cycle," noting that the operating environment is worsening with management warning of "softening demand across most key end-markets" in the second half of 2025.
The research firm adjusted its earnings per share estimates, raising its 2025 EPS forecast by $0.34 to $4.57 while cutting its 2026 EPS view by $0.26 to $5.51. CFRA’s new price target represents a forward price-to-earnings ratio of 5.5x its 2026 EPS estimate, a discount to the three-year average of 8.9x.
In other recent news, Celanese Corporation reported its second-quarter earnings for 2025, which exceeded analyst expectations. The company announced an earnings per share (EPS) of $1.44, surpassing the forecasted $1.40. Revenue also came in higher than anticipated, reaching $2.53 billion compared to the expected $2.5 billion. Despite these positive financial results, Celanese highlighted ongoing challenges in demand across key segments and maintained a cautious outlook. The company’s recent performance underscores the complexities it faces in navigating market conditions. Analysts and investors are closely monitoring these developments as they assess the company’s future trajectory. The earnings report reflects the company’s ability to outperform projections even amid uncertain market dynamics.
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