Gilford Securities Downgrades Celanese (CE)

Gilford Securities is downgrading shares of Celanese CE from Buy to Hold on a valuation move. It has a $36 price target on shares. In a note to clients, Gilford writes, "In the past four months, the stock has gained 30% and reached our $36 price target. Also, following reports of 2Q and 3Q results, our 2010-11 estimates are almost unchanged, which is very different from the situation at Eastman (BUY), where estimates have soared during the period. So, the shares have seen a big upward relative revaluation. Also, whereas the company sees at least a 60-cent EPS increase in 2011, and therefore the Street will also, we think this target may be challenging, and not just because of the low 2010 tax rate and higher 2011 interest expense. We might be conservative, but the company guidance leaves little opportunity for upside surprise." Shares of CE are up 45 cents in early trade to $36.10.