Celanese Corporation (CE): A Bull Case Theory

We came across a bullish thesis on Celanese Corporation (CE) on Hidden Market Gems’ Substack. In this article, we will summarize the bulls’ thesis on CE. Celanese Corporation (CE)’s share was trading at $58.19 as of 11th of June. CE’s trailing and forward P/E were 7.36 and 12.03 respectively according to Yahoo Finance.

A close-up of a technician’s hands pouring polymer powder into a metal mold.

Celanese Corporation, long known for its adaptability in the chemical sector, presents a striking investment case as it emerges from a difficult 2024 marked by declining revenue, negative net income, and falling EBITDA. Despite these headwinds, the company beat expectations in Q1, and the broader picture reveals a company poised for recovery.

With 2024 revenue at $10.28 billion and a net loss of $1.52 billion, the market has priced in much of the recent pain. Yet, forward-looking projections suggest that Celanese’s future hinges on how well it navigates the evolving global energy landscape and executes within it.

The most optimistic path shows a sharp rebound by 2029, potentially driven by strategic vertical consolidation and growth in high-margin specialty chemical segments. Celanese remains well-positioned due to strong end-market demand and a reputation for operational excellence. While 2024 margins have contracted significantly, long-term tailwinds like electrification, lightweight materials, and global industrial investment favor Celanese’s core businesses.

The company’s ability to consolidate within its existing verticals could be transformative, especially if it aligns with favorable macro trends. Execution remains key, but the upside in a recovery scenario is significant, with the potential for material earnings and valuation improvement. For investors with a medium-term horizon, the current stock price reflects a margin of safety, offering an appealing risk/reward setup.

In short, Celanese is an under-the-radar industrial play, currently bruised but fundamentally strong, and capable of meaningful rerating if it delivers on execution.

We previously highlighted a bullish thesis on Celanese (CE) by Kyler Johnson, focusing on its post-M&M acquisition deleveraging path and cost discipline. Hidden Market Gems echoes this optimism but emphasizes CE’s vertical consolidation potential and end-market tailwinds. Both see meaningful upside, with Johnson spotlighting FCF recovery and Hidden Market Gems highlighting long-term industrial transformation.

Celanese Corporation (CE) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held CE at the end of the first quarter which was 35 in the previous quarter. While we acknowledge the risk and potential of CE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.