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On Monday, Evercore ISI made a revision to the price target for Celanese Corporation (NYSE:CE), bringing it down to $75.00 from the previous $85.00, while maintaining an In Line rating for the company’s shares. The adjustment follows a detailed analysis of the company’s position ahead of its first-quarter earnings report, scheduled for May 7. According to InvestingPro data, the stock has experienced a significant decline of nearly 65% over the past year, though analysts expect the company to return to profitability this year.
The research firm’s stance reflects an assessment of Celanese’s risk-reward balance, considering various factors that could insulate the stock’s downside. These include a first-quarter guide provided by the company more than halfway through the quarter, positive intra-quarter data points, and no indication of expectation management by Celanese’s management team. The company maintains a Fair financial health score according to InvestingPro analysis, with a notable track record of maintaining dividend payments for 21 consecutive years.
Evercore ISI anticipates potential upside for Celanese, influenced by a shift in sentiment as the company’s visibility improves. This outlook is based on forthcoming second-half guidance and the likelihood of additional initiatives. Moreover, the firm expects a reduction in concerns over the company’s leverage, citing extended debt maturities, which could lead investors to re-evaluate the stock and adjust its valuation closer to 2024 levels.
Despite the positive forecast, Evercore ISI acknowledges medium-term risks, including the potential for European auto tariffs and high natural gas prices. However, the firm assesses that any significant disruptions from these factors are likely to occur beyond the timeframe of their current tactical call on Celanese’s stock.
In other recent news, Celanese Corporation has announced a series of significant developments. The company has entered into underwriting agreements to issue senior notes totaling $1.8 billion, with $700 million in 6.500% Senior Notes due 2030 and $1.1 billion in 6.750% Senior Notes due 2033. Additionally, €750 million in 5.000% Senior Notes due 2031 will be offered, aimed at bolstering the company’s financial position. Celanese also plans to increase prices for several chemical products in the Western Hemisphere, including vinyl acetate monomer and vinyl-based emulsions, effective March 17, 2025. The price adjustments reflect market condition changes and are part of the company’s strategic pricing initiatives.
Furthermore, Celanese has amended its bylaws to designate specific courts for securities law-related legal proceedings, aiming to streamline litigation processes. Analyst firms have adjusted their outlooks on Celanese, with Piper Sandler reducing the stock price target to $50 and maintaining an Underweight rating, citing challenges in returning to financial health. BofA Securities also lowered its price target from $88 to $72 but retained a Buy rating, suggesting potential improvement in earnings beyond early 2025. These analyst assessments underscore the mixed expectations regarding Celanese’s financial trajectory.
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