Intel stock spikes after report of possible US government stake
Investing.com - Mizuho (NYSE:MFG) maintained its Neutral rating on Celanese (NYSE:CE) but lowered its price target to $48.00 from $59.00 on Tuesday, citing ongoing inventory reduction actions and earnings headwinds. The stock, currently trading at $47.42, has declined over 60% in the past year, according to InvestingPro data, and appears undervalued based on Fair Value analysis.
The chemical company guided for a September quarter EPS midpoint of $1.25, falling short of the Bloomberg consensus of $1.74. Despite lower second-half 2025 earnings expectations, Celanese maintained its fiscal year 2025 free cash flow guidance midpoint at approximately $750 million, compared to about $500 million in 2024. InvestingPro analysis reveals the company has maintained dividend payments for 21 consecutive years, with analysts projecting a return to profitability this year. Get access to 7 more exclusive ProTips and comprehensive analysis with InvestingPro.
Celanese reported June quarter adjusted EBIT of $344 million, exceeding the consensus estimate of $310 million. EBITDA rose seasonally by 30% quarter-over-quarter on modestly higher volume.
The company indicated its third-quarter outlook reflects similar underlying business performance to the second quarter after accounting for ongoing inventory reduction effects. Commentary on acetyls and durables plastics segments aligned with earlier reports from industry peers.
Mizuho’s price target reduction reflects lower peer and market multiples as well as reduced earnings expectations for the chemical manufacturer.
In other recent news, Celanese Corporation announced its second-quarter results, reporting adjusted earnings per share of $1.44, surpassing analyst expectations of $1.40. The company’s revenue reached $2.53 billion, slightly above the consensus estimate of $2.5 billion, although it represented a 4.5% decline from the same period last year. Despite these better-than-expected earnings, Celanese provided third-quarter guidance that fell short of analyst predictions. Additionally, Celanese has secured a new $1.75 billion senior unsecured revolving credit facility, replacing its previous facility set to mature in March 2027, now extended until August 2030. These developments highlight the company’s efforts to manage its financial resources and navigate market challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.