Celanese upgraded to Overweight from Sector Weight at KeyBanc

KeyBanc upgraded Celanese to Overweight from Sector Weight with a $149 price target. The analyst expects Celanese’s earnings per share to reach a “trough level” of $8.46 in 2023, with “meaningful recovery” to the normalized earnings per share potential of $16-$19 ahead within the next few years. As the company’s net debt to EBITDA likely declines to 2.5-3.0-times in 2025 from 5.4-times now, the stock could trade at least at 10-times price-to-earnings ratio, implying a long-term stock potential of $160-$190, or 27-50% upside from here, the analyst tells investors in a research note. The firm views Celanese as a “compelling way to play global manufacturing economic stabilization and recovery.”