Celanese, the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Salvator Tiano from Bank of America Securities reiterated a Buy rating on the stock and has a $65.00 price target.
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Salvator Tiano has given his Buy rating due to a combination of factors that suggest a positive outlook for Celanese despite recent challenges. The company’s Q2 performance showed resilience, with adjusted EPS and EBITDA figures exceeding both forecasts and consensus estimates. Notably, the Engineered Materials segment outperformed expectations, driven by an optimized global footprint and a focus on specialty products, which helped mitigate some of the negative impacts from other areas.
Furthermore, Celanese’s strong free cash flow generation and strategic financial maneuvers, such as extending its $1.75 billion revolver to 2030, provide a solid foundation for addressing upcoming debt maturities. These actions, coupled with the potential proceeds from asset sales like Micromax, bolster the company’s liquidity position. Despite a disappointing Q3 EPS guidance, Tiano believes that the attractive valuation and strategic initiatives support a Buy rating for Celanese’s stock.
Tiano covers the Basic Materials sector, focusing on stocks such as Celanese, Element Solutions, and Westlake Corporation. According to TipRanks, Tiano has an average return of -8.2% and a 48.33% success rate on recommended stocks.