Celanese Analysts Brace For Tough 2025 As Price Cuts Pile Up

Celanese Corporation CE shares are trading lower on Thursday after several analysts slashed price forecasts following fourth-quarter earnings reported on Tuesday. 

Celanese reported adjusted earnings per share of $1.45, beating analysts' estimate of $1.20 and sales of $2.37 billion, which came in line with analysts' estimates.

The company issued guidance for the 2025 first-quarter. It sees earnings per share from 25 cents to 50 cents, versus analysts' estimate of $1.63.

Celanese expects its 2025 second-quarter earnings per share to be about $1 higher than in the first quarter. 

JPMorgan analyst Jeffrey J. Zekauskas lowered the price forecast from $92 to $54 with a Neutral rating.

The analyst writes that Celanese is facing simultaneous challenges in earnings, cash flow, and credit. 

The company has exposure to the automotive industry in Europe and the U.S., where demand is expected to remain flat. 

Zekauskas says that the Acetyl Chain segment may experience pricing pressure in 2025, as lower spot pricing in 2024 impacts large customer contract resets. 

Additionally, the new acetic acid capacity in China could exert downward pressure on pricing in the medium to long term, adds the analyst.

The analyst says he recommends waiting for greater earnings stability and predictability. 

As a result, Zekauskas revised the 2025 EPS forecast down to $6.30 from $9.05.

Other analyst’s price forecast/rating revisions include:

• Baird analyst Ghansham Panjabi maintained an Outperform rating and lowered the price forecast from $110 to $67.
• Wells Fargo analyst Michael Sison reiterated an Equal-Weight rating and cut the price forecast from $75 to $55.
• UBS analyst analyst Joshua Spector kept Neutral and lowered the price forecast from $72 to $60.
• Deutsche Bank analyst David Begleiter maintained a Buy rating and slashed the price forecast from $85 to $70.
• RBC Capital analyst Arun Viswanathan downgraded the company from Outperform to Sector Perform and lowered the price forecast from $84 to $56.

Investors can gain exposure to the stock via First Trust Materials AlphaDEX Fund FXZ and Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF SZNE.

Price Action: CE shares are down 5.04% at $52.15 at the last check Thursday.

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