Analyst John McNulty from BMO Capital maintained a Sell rating on Celanese (CE – Research Report) and keeping the price target at $46.00.
John McNulty has given his Sell rating due to a combination of factors impacting Celanese’s financial outlook. Despite the company’s efforts to manage costs and improve free cash flow through asset sales, the overall demand environment remains challenging. The excess supply in the industry and the company’s significant leverage from previous acquisitions contribute to a difficult operating landscape.
Additionally, while Celanese reported better-than-expected earnings for the first quarter, the year-over-year decline in earnings per share and the underperformance in some segments highlight ongoing financial pressures. The company’s guidance for future quarters aligns with consensus but does not provide a strong enough outlook to offset the risks. As a result, McNulty views the risk/reward profile for equity holders as skewed negatively, leading to a Sell recommendation.
CE’s price has also changed dramatically for the past six months – from $91.000 to $44.770, which is a -50.80% drop .