Celanese stock price target raised to $63 from $53 at RBC Capital

Investing.com - RBC Capital raised its price target on Celanese (NYSE:CE) to $63.00 from $53.00 on Thursday, while maintaining a Sector Perform rating on the chemical company’s stock. Currently trading at $60.62, Celanese sits within the broader analyst target range of $47-$110, with InvestingPro data showing the stock is fairly valued.

The firm cited a somewhat improved outlook for fiscal year 2025, though it expressed caution about persistent weakness in automotive builds. RBC noted that Celanese’s second-quarter performance should indicate how effectively the company has managed inventories to position itself for second-half growth. According to InvestingPro data, while the company isn’t currently profitable, analysts expect positive earnings in 2025 with an EPS forecast of $5.13.

RBC maintained its earnings estimates for Celanese, projecting Q2/FY25/FY26 EPS of $1.33/$4.97/$7.10 and EBITDA estimates of $510M/$1.975B/$2.20B. These figures incorporate improvement from first-quarter 2025 lows.

The firm expressed skepticism about Celanese reaching its $2 quarterly EPS run-rate target until the company demonstrates volume improvement over the next few quarters. Despite these concerns, RBC adjusted its valuation approach.

The new price target is based on a 7.5x multiple of fiscal year 2026 estimated EBITDA, compared to the previous target which used an 8.0x multiple of fiscal year 2025 estimated EBITDA.

In other recent news, Celanese Corporation reported first-quarter 2025 earnings that exceeded analyst expectations, with an earnings per share (EPS) of $0.57 compared to the forecasted $0.39. The company also outperformed revenue projections, posting $2.4 billion against the anticipated $2.26 billion. Analyst firms have responded positively to these developments. KeyBanc Capital Markets raised its price target for Celanese from $71.00 to $76.00, citing the company’s first-quarter performance as a confidence booster in its earnings potential. Wells Fargo (NYSE:WFC) also upgraded Celanese from Equal Weight to Overweight, increasing the price target to $66.00, based on anticipated cost savings and reduced maintenance needs. Similarly, BMO Capital Markets lifted its rating from Underperform to Market Perform, adjusting the price target to $55.00, acknowledging a shift in the risk-reward balance. Additionally, Celanese announced amendments to its corporate governance documents, including changes to its Charter and By-laws, reflecting shareholder approval and aiming for improved governance practices. These updates, confirmed through an SEC filing, provide investors with insights into the company’s strategic direction and financial health.

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