BMO Capital Upgrades Celanese (CE) Stock, Cites Contributing Factors

On May 20, BMO Capital Markets changed its stance on Celanese Corporation (NYSE:CE)’s stock, upgrading it from an “Underperform” to a “Market Perform” rating and lifting the price target to $55 from $46. The upgrade by the research firm is backed by the shift in risk-reward balance. As per the analysts, while there are macroeconomic and end-market uncertainties, along with its significant debt levels, such challenges have been diminished. The reassessment stems from an easing of tariff wars and the expectation of Celanese Corporation (NYSE:CE)’s balance sheet seeking support from near-term asset sales.

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BMO Capital mentioned that Celanese Corporation (NYSE:CE), which is a chemical and specialty materials company, continues to implement stricter cost control measures. The company has increased cost reduction targets to ~$120 million, which it expects to achieve in 2025. Previously, it announced $80 million in cost reductions, mainly in SG&A productivity. Additionally, Celanese Corporation (NYSE:CE) has identified $40 million in additional cost savings opportunities. These have been evenly split between the Engineered Materials business and the Acetyl Chain business. The company continues to drive self-help measures in support of the strategic priorities, including increased cash to deleverage the balance sheet, intensifying cost improvements, and fueling top-line growth with the help of differentiated business models.

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