Celanese downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded Celanese to Market Perform from Outperform with a price target of $119, down from $133. The macro environment “appears to have stalled” with the China recovery muted, Europe struggling, and the U.S. slowing, the analyst tells investors in a research note. This has made for a challenging environment for many of Celanese’s end-markets, which are likely to pressure the company’s earnings more than expected, says the firm Also, given its focus on free cash flow over earnings to reduce its significant debt, Celanese’s pressure on earnings may be amplified in the immediate term, contends BMO.