In this article, we discuss the 5 commodity stocks that received updated recommendations from analysts. If you want to see some more stocks whose ratings were recently changed by analysts, go directly to Analysts are Revising Ratings for These 10 Commodity Stocks.
5. Celanese Corporation (NYSE:CE)
Number of Hedge Fund Holders: 36
Citi lowered its ratings for Celanese Corporation (NYSE:CE) from “Buy” to “Neutral” on Monday, August 1, 2022. The research firm also cut its price target for the specialty materials company from $143 per share to $118 per share.
Citi analyst P.J. Juvekar pointed toward a slowdown in end markets like construction and housing and how it could impact intermediate firms like Celanese Corporation (NYSE:CE). Juvekar also decreased his estimates for 2023, citing elevated energy prices and a slower recovery in certain markets.
Earlier this year, investment management firm Vltava Fund also mentioned Celanese Corporation (NYSE:CE) in its first-quarter 2022 investor letter. Here’s what the firm said:
“We then used the money freed up to, among other things, open three new positions. The stock price declines during the Russian invasion brought a lot of good prices to the market. Out of all the possibilities we considered, we picked the stocks of Celanese (CE).
Celanese is the world’s largest producer of acetic acid and its chemical derivatives, including vinyl acetate monomers and emulsions. Their applications are used in a wide range of industries, such as automotive tobacco, coatings, construction, energy, telecommunications, food, and medical. Celanese recently closed the acquisition of a large part of DuPont’s business, which will make Celanese an even bigger player in the industry while reducing the cyclicality of it business. The acquisition is quite large and should deliver significant value to shareholders that in our view is not at all presently reflected in the share price. Celanese is a business that stands more or less aside from the main interests of most investors, but it is a company with very high returns on capital, strong free cash flow, and historically very efficient resource allocation.”