Global differentiated chemistry solutions and specialty materials provider Celanese Corp. (CE) has acquired technology associated with polyacetal (POM) products production from Grupa Azoty. The transaction is expected to close in early July.
Grupa Azoty, the second-biggest producer of nitrogen and compound fertilizers in Europe, has decided to discontinue its POM production. Consequently, in order to serve Grupa Azoty customers, Celanese is also taking over all current Tarnoform contracts.
Tom Kelly, Senior Vice President, Engineered Materials, Celanese, said, “This transaction will enable Celanese to serve Azoty’s customers with Celanese assets, thereby allowing for an incremental volume opportunity for Celanese as well as access to POM customer base and a proven POM technology in Tarnoform.” (See Celanese stock chart on TipRanks)
Kelly added, “Our Engineered Materials business is a critical growth engine for Celanese, and we continue to take the strategic steps needed, such as this customer and product acquisition, to fuel the ongoing success of the business.”
On June 21, Robert W. Baird analyst Ghansham Panjabi reiterated a Buy rating on the stock with a price target of $195 (31.1% upside potential).
Reacting to the recent pullback in Celanese shares, Panjabi believes investors are underestimating the demand velocity of the company’s diverse end markets.
Based on 9 Buys and 6 Holds consensus on the Street is a Moderate Buy. The average Celanese analyst price target of $178.27 implies 19.9% upside potential. Despite a 10.3% drop in the past month, shares are still up 79.3% over the past year.
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