Evercore Trims Celanese Price Target to $75, Sees Tactical Upside Ahead of Q1 Print

Evercore ISI lowered its price target on Celanese (NYSE:CE) from $85 to $75, while maintaining an In Line rating, citing near-term opportunity despite medium-term headwinds.

Analysts noted that while macro risks like European auto tariffs and elevated natural gas prices pose challenges, these are unlikely to affect Celanese in the short-term window relevant to this tactical setup.

With first-quarter guidance issued well into the quarter and intra-quarter data showing encouraging signs, Evercore sees the downside as relatively contained. The firm also emphasized a lack of negative pre-announcements, which further supports a potential upside surprise when results are reported.

The call is driven by expectations that investor sentiment is near a trough, and that improving forward visibility, including second-half guidance and operational updates, could reignite interest in the stock.

Additionally, recent debt maturity extensions have eased concerns around leverage, giving Celanese more breathing room as it looks to stabilize operations.

Though the price target was reduced, Evercore views current levels as an attractive risk-reward entry point, particularly for investors looking to capitalize on a short-term rebound in sentiment and valuation.

Celanese Corporation (NYSE:CE) is a global chemical and specialty materials company. It produces a wide range of products used in industries such as automotive, consumer goods, and pharmaceuticals. As a key player in the chemical sector, Celanese competes with companies like Dow Inc. and Eastman Chemical Company. The company is set to release its quarterly earnings on February 18, 2025.

Wall Street analysts estimate Celanese's earnings per share (EPS) to be $1.25, with projected revenue of $2.36 billion. However, analysts expect a decline in earnings for the quarter ended December 2024, with a consensus EPS estimate of $1.20. This suggests a potential decrease in revenue compared to the previous year, as highlighted by the anticipated figures.

The upcoming earnings report could significantly impact Celanese's stock price. If the company surpasses the $1.20 EPS expectation, the stock might trend upward. Conversely, if results fall short, a decline could occur. The sustainability of any price changes will depend on management's discussion of business conditions during the earnings call.

Celanese's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of 6.55, indicating how the market values its earnings. Its price-to-sales ratio is 0.68, suggesting the stock is valued at less than its annual sales. The enterprise value to sales ratio is 1.87, reflecting the company's total valuation relative to its sales.

The company's financial health is further illustrated by its debt-to-equity ratio of 1.82, showing its reliance on debt financing. The current ratio of 1.37 indicates Celanese's ability to cover short-term liabilities with short-term assets. These metrics, along with an earnings yield of 15.27%, provide a comprehensive view of Celanese's financial standing.

Celanese Corporation (NYSE:CE) is a global chemical and specialty materials company. It produces a wide range of products used in industries such as automotive, consumer goods, and pharmaceuticals. As a key player in the chemical sector, Celanese competes with companies like Dow Inc. and Eastman Chemical Company. The company is set to release its quarterly earnings on February 18, 2025.

Wall Street analysts estimate Celanese's earnings per share (EPS) to be $1.25, with projected revenue of $2.36 billion. However, analysts expect a decline in earnings for the quarter ended December 2024, with a consensus EPS estimate of $1.20. This suggests a potential decrease in revenue compared to the previous year, as highlighted by the anticipated figures.

The upcoming earnings report could significantly impact Celanese's stock price. If the company surpasses the $1.20 EPS expectation, the stock might trend upward. Conversely, if results fall short, a decline could occur. The sustainability of any price changes will depend on management's discussion of business conditions during the earnings call.

Celanese's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of 6.55, indicating how the market values its earnings. Its price-to-sales ratio is 0.68, suggesting the stock is valued at less than its annual sales. The enterprise value to sales ratio is 1.87, reflecting the company's total valuation relative to its sales.

The company's financial health is further illustrated by its debt-to-equity ratio of 1.82, showing its reliance on debt financing. The current ratio of 1.37 indicates Celanese's ability to cover short-term liabilities with short-term assets. These metrics, along with an earnings yield of 15.27%, provide a comprehensive view of Celanese's financial standing.

BMO Capital analysts downgraded Celanese (NYSE:CE) from Market Perform to Underperform, lowering their price target on the stock from $138.00 to $76.00. This shift came after evaluating the company’s financial outlook following its highly leveraged acquisition of the Mobility & Materials (M&M) business.

The increased debt from the acquisition, combined with rising capacity in Celanese’s key markets and a weaker-than-expected macroeconomic environment, has tilted the company’s risk-reward balance unfavorably for equity holders, even after a recent decline in stock value. The need for Celanese to prioritize its debt obligations over equity returns adds further pressure on shareholder value. Additionally, concerns about potential risks to 2025 financial projections contributed to BMO’s decision to revise the stock’s rating and reduce its target price.

BMO Capital analysts downgraded Celanese (NYSE:CE) from Market Perform to Underperform, lowering their price target on the stock from $138.00 to $76.00. This shift came after evaluating the company’s financial outlook following its highly leveraged acquisition of the Mobility & Materials (M&M) business.

The increased debt from the acquisition, combined with rising capacity in Celanese’s key markets and a weaker-than-expected macroeconomic environment, has tilted the company’s risk-reward balance unfavorably for equity holders, even after a recent decline in stock value. The need for Celanese to prioritize its debt obligations over equity returns adds further pressure on shareholder value. Additionally, concerns about potential risks to 2025 financial projections contributed to BMO’s decision to revise the stock’s rating and reduce its target price.

BMO Capital analysts adjusted their price target for Celanese (NYSE:CE) to $138 from $142 while maintaining a Market Perform rating on the stock. The analysts acknowledged that Celanese is actively utilizing all available strategies to navigate a challenging macroeconomic and operational environment, including supplier issues. However, they noted that these efforts have necessitated further downward adjustments in the company's 2024 forecasts.

Looking ahead to 2025, the analysts expressed caution, suggesting that without a significant macroeconomic recovery, current market expectations may still be set too high. Despite this, they indicated that the risk-reward profile for Celanese is improving. BMO emphasized the need for greater clarity on the 2025 outlook and a clearer path to achieving and exceeding targets before adopting a more positive stance on the stock.