On May 13, 2023, investment analysts at BMO Capital Markets published a research report on Celanese (NYSE:CE) that caused a stir among investors. The report stated that the company’s price target had been lowered from $146.00 to $133.00, indicating a potential upside of 31.38% from the current price.
Celanese last posted its quarterly earnings data on May 9th, and the results were impressive. The basic materials company reported EPS of $2.01 for the quarter, beating the consensus estimate of $1.66 by $0.35. The business also had revenue of $2.85 billion for the quarter, compared to analysts’ expectations of $2.88 billion. Celanese had a net margin of 19.58% and a return on equity of 32.15%. Moreover, the firm’s revenue was up by an astounding 12.4% compared to the same quarter last year.
Celanese is known for its expertise in technology and specialty materials businesses and operates through four segments: Engineered Materials, Acetate Tow, Acetyl Chain, and Other Activities. Of these segments, Engineered Materials is one of the most important ones and includes engineered materials business, food ingredients business as well as certain strategic affiliates.
Although BMO Capital Markets’ report might have caused some concern among investors initially, some experts remain bullish about Celanese’s prospects in the long run. Despite short-term setbacks such as lower price targets due to macroeconomic factors or increased competition in key markets where it operates – like China – this chemical giant remains focused on delivering value to its shareholders over time.
In conclusion, while bearish predictions may cause jitters among investors initially, it’s important to look beyond them and assess companies based on their long-term performance rather than short-term fluctuations like stock prices or earnings reports which fluctuate frequently. As such, investors should stay vigilant and do their due diligence when investing in the stock market to ensure that they don’t fall prey to misconceptions or misaligned expectations.
Mixed Ratings for Celanese Corp.: Analysts Weigh In
Celanese Corp. has received mixed ratings from various equities research firms in recent months. On March 29th, StockNews.com lowered its rating on Celanese from “hold” to “sell”. Royal Bank of Canada followed suit on February 28th, reducing the company’s price target from $139.00 to $131.00, but maintained an “outperform” rating. Citigroup lifted its price target on the stock from $111.00 to $121.00 and affirmed a “neutral” rating on February 27th, while Piper Sandler upgraded Celanese from an “underweight” rating to a “neutral” rating and raised its price target from $105.00 to $120.00 on April 11th.
Bank of America initiated coverage of Celanese on March 1st with a positive outlook – a “buy” rating and a $140.00 price objective given for the stock’s potential performance. Currently, two research analysts have rated Celanese as a sell, while five have issued hold ratings and eight have given buy ratings for the company’s stocks.
Celanese opened at $101.23 per share on May 13th with a market capitalization totaling $10.98 billion. Its P/E ratio is currently sitting at approximately 5.83, while the P/E/G ratio is at roughly 5.69 with a beta of about 1.31.
The company provides technology and specialty materials services under the Engineered Materials, Acetate Tow, Acetyl Chain, and Other Activities segments it manages.
In terms of insider activity, Mark Christopher Murray – Senior Vice President at Celanese – acquired 1,200 shares in the firm’s stock with an average purchase price of $117.15 per share back in February this year in what SEC filings indicate was part of his compensation package.
Several institutional investors have recently bought and sold shares of Celanese, including Parkside Financial Bank & Trust, WealthPLAN Partners LLC, Versant Capital Management Inc, Global Retirement Partners LLC, and BOKF NA. While some believe the stock is worth holding onto long-term given its volatility on the market, others remain skeptical of future returns.
