On Wednesday, Jefferies made adjustments to Celanese Corporation’s (NYSE:CE) financial outlook, reducing the price target from $70.00 to $55.00 while keeping a Hold rating on the stock. The company, currently trading at $53.16 with a market capitalization of $5.81 billion, has seen its shares decline by approximately 46% over the past six months. According to InvestingPro data, the stock is trading near its 52-week low, with six analysts recently revising their earnings expectations downward. The revision follows the company’s fourth-quarter earnings, which surpassed both the consensus and Jefferies’ own estimates. The earnings per share (EPS) for the quarter came in $0.22 above the consensus and $0.26 higher than what Jefferies had projected.
Despite the positive earnings surprise, Jefferies analyst Laurence Alexander expressed concerns over the start of 2025, citing ongoing weakness in the automotive supply chain as a significant factor. While the company maintains a solid current ratio of 1.34, InvestingPro analysis reveals that Celanese hasn’t been profitable over the last twelve months, though analysts predict a return to profitability this year. InvestingPro subscribers have access to over 30 additional financial metrics and exclusive insights about Celanese’s financial health. This issue has prompted the firm to lower its 2025 EPS estimate by $1.15 to $6.55 and the 2026 forecast by $0.45 to $10.00.
In the report, Alexander noted that while Celanese shares may appear attractive from a peak/trough perspective, caution is advised for the near-term. The analyst pointed out that the combination of the company’s financial leverage and the potential for tariffs to lead to a more aggressive automotive inventory reduction this summer could pose risks to the stock’s performance.
Celanese Corporation, a global chemical and specialty materials company, has been navigating a challenging economic environment, with particular struggles due to the automotive sector’s supply chain issues. These challenges have influenced analysts’ expectations and recommendations for the stock.
Investors and market watchers will be keeping an eye on Celanese’s performance, especially in relation to the automotive industry’s recovery and the potential impact of tariffs on the sector. The updated price target and earnings estimates from Jefferies reflect the latest data and expectations for the company’s financial trajectory in the coming years. Based on InvestingPro’s Fair Value analysis, Celanese appears undervalued at current levels, despite trading at a high EBITDA multiple. The company generated $10.28 billion in revenue over the last twelve months, and a comprehensive analysis of its valuation metrics is available in the Pro Research Report, along with detailed insights into its competitive position and growth prospects.
In other recent news, Celanese Corporation reported its Q1 2025 earnings, with an earnings per share (EPS) of $1.45, surpassing the forecast of $1.25. However, the company’s revenue fell short of expectations, coming in at $2.37 billion compared to the projected $2.39 billion. Despite the earnings beat, the company’s stock experienced a significant decline, reflecting investor concerns over the revenue miss. Celanese has been focusing on cash generation and reducing leverage, with plans to improve free cash flow in 2025. The company has executed $75 million in cost-saving actions and reduced its capital expenditure plan by approximately $100 million. Analysts from Deutsche Bank (ETR:DBKGn) and Fermium Research have shown interest in Celanese’s strategic initiatives, such as potential divestitures and the focus on high-growth segments like medical devices and electric vehicles. Furthermore, Celanese has introduced new leadership in its Engineered Materials business to drive improved results and reduce complexity.
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