Celanese Stock (NYSE: CE) Continues Decline as Analyst Cuts Price Target

Down more than 50% in the past 12 months, Celanese Corporation's stock (NYSE: CE) has had it's price target cut today. The Chemicals industry firm has fallen 0.5% on the day, as RBC Capital trim the stock from $88 to $84.

The decision comes amidst a broader research note previewing Q4 results for Commodity Chemicals names and reflects RBC Capital's response to ongoing demand weakness, and a fall in polyethylene prices, although pricing seems to be rebounding in Q1.

According to RBC Capital analyst Arun Viswanathan, despite the demand weakness and polyethylene price drops observed in October, there are signs of pricing improvements in the first quarter. While Viswanathan acknowledges that demand could pick up following rate cuts, the firm now anticipates fewer and smaller cuts, with tangible benefits not expected until mid-2025. Furthermore, consumer demand continues to be restrained due to the prolonged effects of inflation.

Texas-based Celanese Corporation, with its headquarters in Irving, is integral to the production and sale of high-performance engineered polymers across the globe. It operates through two primary segments: Engineered Materials and Acetyl Chain, delivering specialty polymers for various applications, including automotive and medical, and supplying acetyl products for the manufacturing of colorants, paints, pharmaceuticals, and more.

Celanese holds a market capitalisation of approximately $7.76 billion, with a 52-week range between $64.05 and $172.16. Financially, the company presented a trailing P/E ratio of 7.07 and a forward P/E ratio of 8.07, with a dividend rate of $2.8 and a dividend yield of 3.94%. Additionally, their total revenue stands at approximately $10.48 billion, with a net income to common shareholders of about $1.09 billion.

On average, analysts have set a mean target price of $87.61 for Celanese, with a consensus hold rating drawn from 18 analyst opinions. As the company navigates through the current market dynamics of the Chemicals industry, these adjustments by analysts often reflect not only immediate concerns or accolades but also the longer-term strategic positioning of the firm within its respective sector.