Celanese Corporation Faces Tough Times Amid Market Volatility

With a market cap of $5.8 billion, Celanese Corporation (CE) is a Texas-based chemical and specialty materials company that produces a diverse range of high-performance engineered materials, acetyl products, and chemical solutions used across industries such as automotive, consumer goods, medical, and industrial applications.

Stock Struggles: A Stark Contrast to Market Gains

Celanese has significantly lagged behind the broader market during the past year. CE stock prices have plummeted 63.6%, with a year-to-date decline of 21.4%. In contrast, the S&P 500 Index ($SPX) has surged 17% over the past year, with a slight increase of 1.3% in 2025.

Material Stock Performance: A Frustrating During

When focusing on specific sectors, Celanese has also underperformed compared to the Materials Select Sector SPDR Fund’s (XLB) modest 2.1% gains over the past year and 5.4% rise this year.

Q4 Earnings Disappointment and Investor Concerns

Celanese shares fell by 22.7% in the past week following disappointing Q4 earnings released on February 18, alongside weak guidance for 2025. Despite beating revenue and earnings estimates, investor worries remain due to exposure to struggling sectors like automotive and consumer electronics, coupled with the underperformance of its $11 billion acquisition of DuPont’s mobility and materials division.

Forecasts and Analyst Ratings

For the current fiscal year ending in December, analysts predict CE’s adjusted earnings per share (EPS) to decline by 14.1% year-over-year to $7.19. The company’s record shows a mixed earnings surprise history, surpassing analysts’ estimates twice in the past four quarters while falling short on two occasions.

Currently, CE stock holds a consensus “Hold” rating among 17 analysts. Among them, three recommend a “Strong Buy,” 11 suggest “Hold,” and three advocate for a “Strong Sell” rating.

This outlook is notably more bullish compared to two months ago, when only two analysts rated the stock as a “Strong Buy.”

Adjusted Price Targets Amid Lowered Expectations

On February 24, BofA Securities lowered its price target for Celanese from $88 to $72, while still maintaining a “Buy” rating. Analysts expect earnings to reach their lowest point in late 2024 and early 2025 before a recovery. However, EBITDA is expected to remain below the levels seen in 2023-24. Despite concerns regarding the balance sheet, analysts view the risk of an equity raise as low, thanks to strong interest in credit markets and a consistent dividend history spanning 21 years.

CE’s mean price target of $71.50 indicates a 31.4% premium over current prices. Conversely, the highest target from analysts at $130 suggests a potential upside of 138.9%.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.