Key insights
- Morgan Stanley raised its price target for Celanese (CE) due to an improved operating environment, citing supply disruption, a steeper cost curve, and greater cash flow. The firm anticipates Q1 EPS above consensus and projects higher EBITDA for both Engineered Materials and Acetyl Chain segments. While acknowledging potential challenges like oversupply and raw material costs, the overall outlook is positive, contributing to a modest bullish signal for the stock and potentially the broader chemical sector.
Investing.com - Morgan Stanley raised its price target on Celanese shares (NYSE:CE) to $72 from $50 while maintaining an Equalweight rating on the stock. The stock currently trades at $68.74, near its 52-week high of $69.61, reflecting a remarkable 64% year-to-date gain.
The firm cited improvement in the operating environment from supply disruption, a steeper cost curve and greater cash flow for debt paydown as reasons for the price target increase.
Morgan Stanley expects the company’s first-quarter earnings per share to come in at $1.00, moderately above the consensus estimate of $0.88 and above the company’s guidance range of $0.70 to $0.85. This optimism aligns with broader analyst sentiment, as InvestingPro data shows 6 analysts have revised earnings upwards for the upcoming period. The platform reveals Celanese is currently trading above its Fair Value, among 8 additional ProTips available to subscribers. The firm projects first-quarter Engineered Materials EBITDA at $210 million compared to consensus of $206 million and guidance of $210 million to $230 million. First-quarter Acetyl Chain EBITDA is expected at $154 million versus consensus of $144 million and guidance of $110 million to $125 million.
The firm now forecasts 2026 EBITDA of $2.112 billion compared to consensus estimates of $2.063 billion. Morgan Stanley projects second-quarter Acetyl Chain EBIT at $366 million versus consensus of $206 million.
The firm noted it is monitoring the acetyl cost curve steepening, though questions remain on the duration of the uplift given underlying oversupply, as well as Engineered Materials demand and price-cost dynamics amid higher raw materials, soft automotive markets and Ibn Sina disruption.
In other recent news, Celanese Corporation announced several key developments impacting its operations and financial activities. The company has raised prices for its engineered materials and acetyl product portfolio, effective either immediately or as contracts allow. These price adjustments affect a range of products, including polyamide 6 and 66, with increases varying by region. Additionally, Celanese declared a quarterly cash dividend of $0.03 per share, payable in May to stockholders of record in late April.
Celanese’s shareholders participated in the 2026 Annual Meeting, where they elected nine directors to the board, ratified the company’s independent auditor, and approved executive compensation. In a move to strengthen its leadership, Celanese also announced the election of Anne P. Noonan to its board of directors. These recent developments highlight the company’s strategic adjustments in pricing and governance.
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