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Celanese (NYSE:CE) on Monday was upgraded to Overweight from a previous investment rating of Neutral by analysts at financial-services firm Piper Sandler. They said the maker of plastics and chemicals shows signs of reducing merger-related debt while improving profitability.
“Our preference is now to take a longer-term view and look beyond the challenges that remain in 2024,” Charles Neivert, analyst at Piper Sandler, said in a February 26 report. “The upgrade reflects the progress on earnings and debt we see coming in 2024 and showing more strongly in 2025.”
Piper Sandler forecast that Celanese (CE) boost earnings from $10.78 a share in 2024 to $13.97 a share the following year.
The firm raised its price target on Celanese (CE) to $170 a share from $135 a share previously, based on an estimated enterprise value that’s 10.4 times earnings before interest, taxes, depreciation and amortization in 2025.
“The earnings recovery and balance sheet reconstruction will not happen suddenly, but we feel the most damaging economic environment and industry dynamics are moving into the rearview mirror,” the report said of Celanese (CE).