Celanese price target raised to $171 from $165 at RBC Capital

RBC Capital raised the firm’s price target on Celanese to $171 from $165 and keeps an Outperform rating on the shares as part of a broader research note previewing Q1 results in Commodity Chemicals. Destocking has ended in most chains, but high interest rates and weak demand have persisted, the analyst tells investors in a research note. RBC further notes that it no longer expects three rate cuts from the Fed this year, warning that volume recoveries across consumer, auto, and construction could likely be slower, resulting in companies tempering FY24 guides. The firm adds however that because of deleveraging and lower interest expense, it has raised its assumed enterprise value to expected EBITDA multiple on the stock to 11-times from 10.5-times, driving a higher price target.