Credit Suisse Raises CE Target To $55 From $44

Credit Suisse said that it continues to believe that Celanese Corporation CE offers one of the most compelling stories in the space, “offering 35% upside to our revised 12- month price target of $55 (from $44), which reflects a target multiple of 7.3X applied to our 2012 EBITDA forecast as well as its significant cash generation going towards net debt reduction in our valuation calculation.” “With the company having some of the better normalized returns in the group as well as robust growth outlook and some resilience to the aforementioned raw material headwinds, we believe CE's valuation discount to the group (6.7X vs. the group at 7.9X our 2011 estimates) doesn't make sense and should close over time,” Credit Suisse writes. Celanese Corporation currently trades at $42.76.