UPDATE: Goldman Sachs Upgrades Celanese Corp. To Buy Ahead Of Analyst Day

Goldman Sachs upgrades Celanese CE to Buy ahead of its May 10 investor day and following recent meetings with management, very strong 1Q11 results and forward outlook, and recent stock weakness. It now expect 2011/12/13 EPS of $4.56/$5.31/$6.17. Goldman's SOTP based, $62 price target implies 32% upside from current levels, which it views as an attractive entry point. Goldman views CE's May 10 analyst day as a catalyst for: management to revisit its 2013 segment EBITDA targets and/or introduce higher 2014 targets; and investor awareness of the prospects for CE's nascent ethanol opportunity, which it views as a “call option”. Goldman Sachs views Celanese as one of the best beat and raise stories in its coverage universe. Goldman Sachs believes that consensus is overlooking recent moves in acetic acid prices, 2H11 strength from a major plant move/expansion, and CE's exposure to the strong Euro. Goldman Sachs raised its PT to $62 from $45, post estimate revisions, rolling forward to a 2012 EBITDA base and applying a P/E multiple to affiliate equity earnings. Downside risks include weaker macro conditions and higher input costs. CE closed Wednesday at $47.12