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DALLAS - Celanese Corporation (NYSE: CE), the global chemical and specialty materials company, has announced an upcoming price increase for several of its products, including vinyl acetate monomer (VAM), vinyl-based emulsions, redispersible powders (RDP), and other derivative products. The price adjustments are set to take effect on March 17, 2025, or as individual contracts permit. The announcement comes as the company’s stock has experienced significant pressure, down over 64% in the past year, though InvestingPro analysis suggests the stock is currently undervalued.
The company has detailed the price increases as $100 per metric ton for VAM and $50 per metric ton for standard grade vinyl-based emulsions in the United States, Canada, Mexico, and South America. The same products will see a rise of €100 and €50 per metric ton, respectively, in the EMEA region (Europe, Middle East, and Africa). For redispersible powders, the increase will be $60 in the Americas and €60 in the EMEA region. Celanese has communicated that other grades of derivative products may experience higher price increases, which are being communicated directly to the impacted customers. According to InvestingPro data, analysts expect the company to return to profitability this year, with 11 analysts recently adjusting their earnings forecasts.
Celanese is recognized as a Fortune 500 company and is known for its role in producing specialty material solutions that are utilized across various major industries and consumer applications. The company emphasizes its commitment to sustainability and inclusivity, aiming to manage the lifecycle of its materials responsibly and expand its portfolio of sustainable products to meet growing customer and societal demands. With around 12,200 employees globally, Celanese reported net sales of $10.3 billion in 2024. InvestingPro analysis shows the company maintains a "Fair" overall financial health score, with particularly strong metrics in profit and relative value components. For deeper insights into Celanese’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The forthcoming price increases reflect changes in the market conditions for the company’s products in the Western Hemisphere. This information is based on a press release statement from Celanese Corporation.
In other recent news, Celanese Corporation has announced the issuance of senior notes totaling $1.8 billion, which includes $700 million in 6.500% Senior Notes due 2030 and $1.1 billion in 6.750% Senior Notes due 2033. This financial move is part of Celanese’s strategy to strengthen its financial position and support its business operations. Meanwhile, Piper Sandler adjusted its outlook on Celanese, reducing the stock price target to $50 from $77 while maintaining an Underweight rating, citing challenges in the company’s financial recovery. BofA Securities also revised its price target for Celanese, lowering it from $88 to $72 but maintaining a Buy rating, noting that earnings might improve beyond the first quarter of 2025. UBS reduced its price target to $60 from $72, retaining a Neutral rating, and highlighted concerns over Celanese’s earnings power and leverage. Additionally, RBC Capital Markets downgraded Celanese from Outperform to Sector Perform, with a new price target of $56, due to challenges in the automotive market affecting earnings. These developments reflect the varied analyst perspectives on Celanese’s financial health and future performance.
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