J.P. Morgan Upgrades Celanese to Overweight with $68 Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2026
0mins
Source: seekingalpha
Celanese Corp's stock fell 5.56% and hit a 20-day low amid broader market declines, with the Nasdaq-100 down 0.27% and the S&P 500 down 0.36%.
J.P. Morgan upgraded Celanese from Neutral to Overweight with a price target of $68, reflecting confidence in the company's future growth despite a 14% drop in shares last week due to disappointing free cash flow growth expectations. Analysts expect sharp earnings growth in 2026 driven by price inflation in acetic acid derivatives like VAM and VAE, alongside anticipated persistent shortages in the acetyl chain, which could keep average acetyl chemicals prices elevated in the near term.
The upgrade from J.P. Morgan is expected to bolster investor confidence, as analysts predict Celanese will generate free cash flow equivalent to 11%-13% of its share price in 2026-2027, positively impacting its profitability.
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Analyst Views on CE
Wall Street analysts forecast CE stock price to rise
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 52.390
Low
43.00
Averages
54.78
High
75.00
Current: 52.390
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 Announces Price Increase for Engineered Materials
- Price Increase Rationale: Celanese has announced a price increase for various engineered materials effective June 1, 2026, primarily due to recent market dynamics and global supply chain disruptions, which is expected to positively impact the company's revenue.
- Specific Price Adjustments: The price increases vary by material, with UHMW-PEGUR® rising by $0.20/kg in Asia and PBT/PET Crastin® and Celanex® products increasing by $0.25/lb in the Americas, enhancing profitability across regions.
- Market Positioning Advantage: Despite challenges, Celanese maintains a strong market position through its regional supply chain and manufacturing sites, effectively supporting customer needs and enhancing customer loyalty and competitive edge.
- Sustainability Commitment: Celanese emphasizes its commitment to sustainability by responsibly managing material usage and expanding its portfolio of sustainable products to meet customer and societal demands, further enhancing its brand image.
See More
J.P. Morgan Upgrades Celanese to Overweight with $68 Target
- Rating Upgrade: J.P. Morgan upgraded Celanese from Neutral to Overweight with a price target of $68, reflecting confidence in the company's future growth despite a 14% drop in shares last week due to disappointing free cash flow growth expectations.
- Earnings Growth Outlook: Analysts expect Celanese to experience sharp earnings growth in 2026 driven by price inflation in acetic acid derivatives like VAM and VAE, alongside anticipated persistent shortages in the acetyl chain, which could keep average acetyl chemicals prices elevated in the near term.
- Raw Material Price Impact: The closure of the Strait of Hormuz is expected to dislocate raw material values, leading to higher average prices for acetic acid and vinyl acetate monomer, positively impacting Celanese's profitability according to analysts.
- Cash Flow Expectations: J.P. Morgan anticipates that Celanese will generate free cash flow equivalent to 11%-13% of its share price in 2026-2027, further bolstering investor confidence in the company's future financial health.
See More
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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
- Price Increase Rationale: Celanese has announced a price increase for various engineered materials effective June 1, 2026, primarily due to recent market dynamics and global supply chain disruptions, which is expected to positively impact the company's revenue.
- Specific Price Adjustments: The price increases vary by material, with UHMW-PEGUR® rising by $0.20/kg in Asia and PBT/PET Crastin® and Celanex® products increasing by $0.25/lb in the Americas, enhancing profitability across regions.
- Market Positioning Advantage: Despite challenges, Celanese maintains a strong market position through its regional supply chain and manufacturing sites, effectively supporting customer needs and enhancing customer loyalty and competitive edge.
- Sustainability Commitment: Celanese emphasizes its commitment to sustainability by responsibly managing material usage and expanding its portfolio of sustainable products to meet customer and societal demands, further enhancing its brand image.
See More
J.P. Morgan Upgrades Celanese to Overweight with $68 Target
- Rating Upgrade: J.P. Morgan upgraded Celanese from Neutral to Overweight with a price target of $68, reflecting confidence in the company's future growth despite a 14% drop in shares last week due to disappointing free cash flow growth expectations.
- Earnings Growth Outlook: Analysts expect Celanese to experience sharp earnings growth in 2026 driven by price inflation in acetic acid derivatives like VAM and VAE, alongside anticipated persistent shortages in the acetyl chain, which could keep average acetyl chemicals prices elevated in the near term.
- Raw Material Price Impact: The closure of the Strait of Hormuz is expected to dislocate raw material values, leading to higher average prices for acetic acid and vinyl acetate monomer, positively impacting Celanese's profitability according to analysts.
- Cash Flow Expectations: J.P. Morgan anticipates that Celanese will generate free cash flow equivalent to 11%-13% of its share price in 2026-2027, further bolstering investor confidence in the company's future financial health.
See More
Latest Wall Street Ratings Overview
- Goldman Sachs Bullish on Aevex: Goldman Sachs initiates coverage of Aevex (AVEX) with a Buy rating and a $34 price target, based on a 5.4X CY27 EV/Sales, indicating confidence in the company's unique position in the drone market and its growth potential.
- Citi Raises Broadcom Target: Citi raises Broadcom's price target from $475 to $500, applying a 20x multiple to FY28 EPS of $25, reflecting optimism about the company's earnings visibility and maintaining its status as the #1 semiconductor pick for 2026.
- JPMorgan Upgrades Braskem: JPMorgan upgrades Braskem to Overweight from Neutral, citing improved market fundamentals, tighter supply, and strengthened governance post-restructuring, which are expected to enhance profit margins in the chemical sector.
- Evercore Initiates Benitec Coverage: Evercore initiates coverage of Benitec Biopharma with an Overweight rating, highlighting significant upside potential in the rare disease market, suggesting promising investment opportunities ahead.
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
