Tonix Pharmaceuticals stock halted ahead of FDA approval news
Investing.com - KeyBanc lowered its price target on Celanese (NYSE:CE) to $70.00 from $77.00 on Wednesday, while maintaining an Overweight rating on the chemical company’s stock. According to InvestingPro data, the stock is currently trading well below its 52-week high of $142.54, with technical indicators suggesting oversold conditions.
The price target reduction follows Celanese’s disappointing second-quarter update, which revealed a significant drop in demand during June that continued into July with limited visibility ahead. KeyBanc noted that despite signs of successful cost management efforts reflected in good second-quarter margins, Celanese faces ongoing challenges with volumes and pricing.
The research firm expressed surprise at the magnitude of Wednesday’s stock underperformance, with Celanese shares falling 13.1% compared to the S&P 500’s 1.1% gain. KeyBanc pointed out that Celanese has been one of the worst-performing stocks in its coverage since competitor Eastman Chemical’s earnings report earlier in August, with CE down 21% versus EMN’s 13% decline in that period.
KeyBanc revised its 2025 earnings per share estimate downward by 14% to reflect the challenging demand environment, though it noted Celanese shares now trade at what it considers an attractive free cash flow yield of 16% for 2025. The firm also identified potential issues with filter tow demand and pricing extending into 2026. This aligns with InvestingPro data showing current financials with $9.9 billion in revenue and $1.7 billion in EBITDA, trading at an attractive 0.89x price-to-book ratio. Discover detailed financial health scores and comprehensive analysis in the Pro Research Report, available for 1,400+ top US stocks.
While Celanese continues to view $2.00 EPS per quarter as an attainable target with room for improvement as demand recovers, KeyBanc believes this run-rate is unlikely in 2026 without noticeable demand acceleration, instead projecting a $1.55-$1.75 quarterly range as reasonable for next year.
In other recent news, Celanese Corporation reported its second-quarter earnings for 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $1.44, surpassing the forecasted $1.40, and revenue reached $2.53 billion, slightly above the anticipated $2.5 billion. Despite these positive financial results, Celanese is facing challenges, including weakened demand and a cautious outlook, which have impacted investor sentiment. BofA Securities recently lowered its price target for Celanese to $59 from $65, maintaining a Buy rating due to declining demand and shortened order books noted in June and July. Meanwhile, CFRA cut its price target to $30 from $37, citing concerns over Celanese’s high debt levels and ongoing margin contraction. CFRA also maintained a Sell rating, highlighting tariff concerns that continue to pressure demand. These developments indicate that while Celanese has outperformed earnings expectations, it continues to navigate significant market challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.