JP Morgan Upgrades Celanese to Neutral, Lowers Price Target to $130
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 05 2024
0mins
Should l Buy CE?
Source: Benzinga
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Analyst Views on CE
Wall Street analysts forecast CE stock price to fall
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 58.400
Low
43.00
Averages
54.78
High
75.00
Current: 58.400
Low
43.00
Averages
54.78
High
75.00
About CE
Celanese Corporation is a chemical and specialty materials company which is engaged in producing engineered polymers that are used in applications, as well as acetyl products, which are intermediate chemicals for all industries. The Company operates through two segments, which include Engineered Materials and Acetyl Chain. The Engineered Materials segment develops, produces and supplies a portfolio of specialty polymers for automotive and medical applications, as well as industrial products and consumer electronics. Its Engineered Materials are used in a range of end-use products including fuel system components, automotive safety systems, medical applications, consumer electronics, appliances, industrial products, and others. The Acetyl Chain segment includes the integrated chain of acetic acid, vinyl acetate monomer (VAM), acetic anhydride, acetate esters, emulsion polymers, ethylene vinyl acetate (EVA) polymers, redispersible powders (RDP), and acetate tow businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Celanese Q1 2026 Earnings Call Insights
- Cash Generation Focus: CEO Scott Richardson emphasized that Celanese will continue to prioritize cash generation despite low end-use demand, with expectations to leverage supply chain disruptions for performance improvement in Q2.
- Absorption Cost Impact: CFO Chuck Kyrish projected an additional $50 million absorption cost in the Engineered Materials segment for Q2, which will negatively impact the income statement, while the company is reducing complexity to optimize inventory.
- EPS Guidance: Management confirmed a target of $3 per share in EPS for the second half, assuming supply chains normalize by the end of Q2, although high feedstock costs may negatively affect demand.
- Cautious M&A Strategy: Kyrish indicated that the company will aggressively pursue divestitures but has not included any cash proceeds in its planning due to market uncertainties, reflecting a cautious approach to future transactions.
See More
Celanese Reports Q1 2026 Earnings: 6% Increase in Net Sales
- Strong Financial Performance: Celanese reported net sales of $2.3 billion for Q1 2026, reflecting a 6% sequential increase driven by a 5% rise in volume, indicating robust demand and stable pricing strategies in the market.
- Improved Profitability: The adjusted earnings per share for the first quarter reached $0.85, a 57% increase year-over-year, showcasing the company's enhanced cost productivity and favorable product mix in its Engineered Materials and Acetyl Chain segments.
- Strategic Adjustments: The company announced the closure of its nylon 6,6 polymerization unit in Singapore to reposition its nylon business for greater competitiveness, while successfully restarting the VAM unit in Frankfurt, Germany, enhancing supply reliability and demonstrating agility in responding to market changes.
- Optimistic Cash Flow Outlook: Celanese raised its full-year free cash flow outlook to $700 to $800 million for 2026, reflecting confidence in accelerating deleveraging and driving revenue growth, which is expected to further strengthen its financial stability.
See More
Celanese Corp to Report Q1 Earnings on May 5
- Earnings Report Announcement: Celanese Corp is set to report its Q1 earnings on May 5, with analysts expecting earnings of $0.88 per share, reflecting market confidence in the company's profitability and potentially positive stock price implications.
- Dividend Declaration: The company has declared a dividend of $0.03 per share, which, while relatively modest, demonstrates its commitment to shareholder returns and may attract income-seeking investors looking for stability.
- Stock Performance: Celanese shares closed at $68.74 on Monday, providing a benchmark for the company's upcoming earnings report, as investors will closely monitor the results to assess potential stock price volatility.
- Market Expectations: Analysts maintain an optimistic outlook for the upcoming earnings report, suggesting that if actual earnings exceed expectations, it could drive the stock price higher, whereas disappointing results may lead to declines, highlighting the market's keen interest in the company's financial health.
See More
Celanese Announces Price Increase for Engineered Materials
- Reason for Price Increase: Celanese announced a price increase for various engineered materials effective May 1, 2026, due to market changes and global supply chain disruptions, demonstrating the company's responsiveness to dynamic market conditions.
- Specific Increases: The price hikes vary by material, with non-flame retardant PA6 products increasing by $0.30/kg in Asia and PA66 products by $0.50/kg, reflecting the company's strategic pricing approach across different markets.
- Market Positioning: Despite challenges, Celanese remains well-positioned to support its customers through its regional supply chain and manufacturing sites, along with its technology and innovation centers, enhancing its competitive edge in the market.
- Company Overview: Celanese is a global leader in chemistry with net sales of $9.5 billion in 2025 and over 11,000 employees, committed to sustainability and social responsibility, showcasing its significant industry impact.
See More
Celanese Implements Operational Changes Amid Middle East Tensions
- Supply Chain Security: In response to geopolitical tensions in the Middle East, Celanese is adjusting its global production network to ensure supply continuity, significantly enhancing customer focus on supply security, which is expected to strengthen the company's competitive position in the market.
- Capacity Enhancement Plan: Celanese has restarted its vinyl acetate monomer unit in Frankfurt, Germany, and is accelerating the commissioning of a new vinyl acetate ethylene emulsions reactor, which is expected to increase capacity and lower costs, thereby improving overall operational efficiency.
- Raw Material Redirection: To support the restart in Frankfurt, Celanese is redirecting methanol produced at its Fairway Methanol joint venture in Clear Lake, Texas, to ensure sufficient raw material supply for its polyoxymethylene unit when it resumes operations in the second quarter, further optimizing resource allocation.
- Market Adaptability: Executives stated that Celanese's existing operating model allows it to flexibly respond to fluctuations in supply and demand, continuously adjusting its global network to adapt to changing market conditions, thereby enhancing the company's market adaptability.
See More
CELANESE CORP: UBS Increases Price Target from $58 to $64
- Company Update: Celanese Corporation has raised its price target for UBS from $58 to $64.
- Market Reaction: This adjustment reflects a positive outlook on the company's performance and market conditions.
See More
Celanese Q1 2026 Earnings Call Insights
- Cash Generation Focus: CEO Scott Richardson emphasized that Celanese will continue to prioritize cash generation despite low end-use demand, with expectations to leverage supply chain disruptions for performance improvement in Q2.
- Absorption Cost Impact: CFO Chuck Kyrish projected an additional $50 million absorption cost in the Engineered Materials segment for Q2, which will negatively impact the income statement, while the company is reducing complexity to optimize inventory.
- EPS Guidance: Management confirmed a target of $3 per share in EPS for the second half, assuming supply chains normalize by the end of Q2, although high feedstock costs may negatively affect demand.
- Cautious M&A Strategy: Kyrish indicated that the company will aggressively pursue divestitures but has not included any cash proceeds in its planning due to market uncertainties, reflecting a cautious approach to future transactions.
See More
Celanese Reports Q1 2026 Earnings: 6% Increase in Net Sales
- Strong Financial Performance: Celanese reported net sales of $2.3 billion for Q1 2026, reflecting a 6% sequential increase driven by a 5% rise in volume, indicating robust demand and stable pricing strategies in the market.
- Improved Profitability: The adjusted earnings per share for the first quarter reached $0.85, a 57% increase year-over-year, showcasing the company's enhanced cost productivity and favorable product mix in its Engineered Materials and Acetyl Chain segments.
- Strategic Adjustments: The company announced the closure of its nylon 6,6 polymerization unit in Singapore to reposition its nylon business for greater competitiveness, while successfully restarting the VAM unit in Frankfurt, Germany, enhancing supply reliability and demonstrating agility in responding to market changes.
- Optimistic Cash Flow Outlook: Celanese raised its full-year free cash flow outlook to $700 to $800 million for 2026, reflecting confidence in accelerating deleveraging and driving revenue growth, which is expected to further strengthen its financial stability.
See More
Celanese Corp to Report Q1 Earnings on May 5
- Earnings Report Announcement: Celanese Corp is set to report its Q1 earnings on May 5, with analysts expecting earnings of $0.88 per share, reflecting market confidence in the company's profitability and potentially positive stock price implications.
- Dividend Declaration: The company has declared a dividend of $0.03 per share, which, while relatively modest, demonstrates its commitment to shareholder returns and may attract income-seeking investors looking for stability.
- Stock Performance: Celanese shares closed at $68.74 on Monday, providing a benchmark for the company's upcoming earnings report, as investors will closely monitor the results to assess potential stock price volatility.
- Market Expectations: Analysts maintain an optimistic outlook for the upcoming earnings report, suggesting that if actual earnings exceed expectations, it could drive the stock price higher, whereas disappointing results may lead to declines, highlighting the market's keen interest in the company's financial health.
See More
Celanese Announces Price Increase for Engineered Materials
- Reason for Price Increase: Celanese announced a price increase for various engineered materials effective May 1, 2026, due to market changes and global supply chain disruptions, demonstrating the company's responsiveness to dynamic market conditions.
- Specific Increases: The price hikes vary by material, with non-flame retardant PA6 products increasing by $0.30/kg in Asia and PA66 products by $0.50/kg, reflecting the company's strategic pricing approach across different markets.
- Market Positioning: Despite challenges, Celanese remains well-positioned to support its customers through its regional supply chain and manufacturing sites, along with its technology and innovation centers, enhancing its competitive edge in the market.
- Company Overview: Celanese is a global leader in chemistry with net sales of $9.5 billion in 2025 and over 11,000 employees, committed to sustainability and social responsibility, showcasing its significant industry impact.
See More
Celanese Implements Operational Changes Amid Middle East Tensions
- Supply Chain Security: In response to geopolitical tensions in the Middle East, Celanese is adjusting its global production network to ensure supply continuity, significantly enhancing customer focus on supply security, which is expected to strengthen the company's competitive position in the market.
- Capacity Enhancement Plan: Celanese has restarted its vinyl acetate monomer unit in Frankfurt, Germany, and is accelerating the commissioning of a new vinyl acetate ethylene emulsions reactor, which is expected to increase capacity and lower costs, thereby improving overall operational efficiency.
- Raw Material Redirection: To support the restart in Frankfurt, Celanese is redirecting methanol produced at its Fairway Methanol joint venture in Clear Lake, Texas, to ensure sufficient raw material supply for its polyoxymethylene unit when it resumes operations in the second quarter, further optimizing resource allocation.
- Market Adaptability: Executives stated that Celanese's existing operating model allows it to flexibly respond to fluctuations in supply and demand, continuously adjusting its global network to adapt to changing market conditions, thereby enhancing the company's market adaptability.
See More
CELANESE CORP: UBS Increases Price Target from $58 to $64
- Company Update: Celanese Corporation has raised its price target for UBS from $58 to $64.
- Market Reaction: This adjustment reflects a positive outlook on the company's performance and market conditions.
See More
