Investing.com — Bank of America has upgraded Celanese Corporation (NYSE:) to “Buy” from “Underperform,” given stock’s attractive valuation and early signs of recovery in the acetyls market.
The price target was adjusted at $88, down from $95, while shares jumped 6% at $71.5
The upgrade was driven by expected demand recovery for CE’s products, addressable leverage through free cash flow, and the potential for corrective actions to bolster investor confidence.
“We believe that CE can address its leverage challenges without major dilutive actions,” analyst said.
Positive trends include improving demand in India and a supply response in China, with operating rates falling from multi-year highs. Despite concerns over supply growth limiting margin recovery, BofA believes the worst is over.
Celanese’s free cash flow, projected at over $1 billion in 2025, is expected to support debt repayment without major dilutive actions, even amid higher refinancing costs.
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