Celanese: Hold Rating Amid Macroeconomic Uncertainties and Debt Challenges with Potential Upside from Asset Sales

In a report released today, John McNulty from BMO Capital upgraded Celanese (CE – Research Report) to a Hold, with a price target of $55.00.

John McNulty has given his Hold rating due to a combination of factors including macroeconomic uncertainties and significant debt levels that Celanese is currently facing. Despite these challenges, there are mitigating factors such as the moderation of tariff wars and potential near-term benefits from asset sales that could improve the company’s balance sheet.
Furthermore, Celanese’s management has been focusing on aggressive cost-cutting measures and plans to deleverage by selling certain assets, which could generate significant proceeds. The company’s earnings have shown signs of stabilization, with management indicating potential improvements if end-markets remain steady. However, risks related to the automotive sector and tariffs still linger, justifying the Hold rating as the risk/reward balance has improved but remains cautious.

In another report released on May 14, Barclays also maintained a Hold rating on the stock with a $62.00 price target.