CE Should I Buy
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Celanese Corp is not a strong buy for a beginner, long-term investor at this time. While the stock has shown some positive price movement and stabilization in certain markets, the company's financial performance is weak, with significant declines in revenue, net income, and EPS. Additionally, the options data and technical indicators do not strongly support a bullish trend. Analysts are mixed, with some seeing potential for recovery, but others remaining cautious due to ongoing challenges in the chemical industry. A 'hold' action is recommended to wait for clearer signs of recovery or stabilization.
The technical indicators show mixed signals. The MACD is positive but contracting, RSI is neutral at 49.686, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is trading near its pivot point of 56.526, with resistance at 60.616 and support at 52.437. This suggests limited immediate upside potential.
Some analysts, like Citi and Jefferies, have raised price targets and see potential stabilization in the China acetyls market and demand recovery. The stock has also shown a 30% year-to-date increase, indicating some investor optimism.
Q4 financials were weak, with revenue down 7% YoY, net income down 100.99%, and EPS down 100.97%. Analysts like Wells Fargo and Mizuho remain cautious, citing weak demand and challenges in the chemical industry. Options sentiment is bearish, and the stock's near-term trend suggests limited upside.
In Q4 2025, Celanese reported a 7% YoY revenue decline to $2.2 billion, a net income drop of 100.99% to $19 million, and an EPS decline of 100.97% to $0.17. Gross margin also dropped significantly to 17.38%, reflecting ongoing profitability pressures.
Analyst ratings are mixed. Citi and Jefferies are bullish, raising price targets to $75 and $86, respectively, citing potential stabilization and demand recovery. However, Wells Fargo, Mizuho, and others remain cautious, with price targets in the $50-$55 range, reflecting concerns about weak demand and industry challenges.
