Celanese completes acquisition
On May 3, 2017, Celanese (CE) announced that it had completed the takeover of the nylon compounding division of NILIT. CE’s acquisition deal includes NILIT’s nylon compounding product portfolio, customer agreements, as well as manufacturing, technology, and commercial facilities in Germany and China. Celanese will integrate these businesses with its engineered materials business.
Scott Richardson, senior vice president of the Celanese engineered materials business, said, “The addition of the NILIT nylon compounding product portfolio will extend Celanese’s engineered materials solutions offering, and when combined with the company’s world-class operating model, we are well positioned to be the first choice materials solutions provider for our customers.”
Celanese’s stock performance for the week ended May 5
For the week ended May 5, 2017, Celanese closed at $86.40, falling 0.7% for the week. The stock was trading 0.6% below its 100-day moving average of $86.92, indicating a trend reversal in the stock. On a year-to-date basis, Celanese has risen 9.7%.
CE’s 14-day RSI (relative strength index) of 40 indicates that the stock is neither overbought nor oversold. An RSI of 70 indicates that a stock is overbought, and a score of 30 suggests that a stock is oversold.
Analysts have given Celanese a 12-month target price of $97.90, implying a potential return of 13.3% from its closing price of $86.40 on May 5, 2017. Celanese outperformed the PowerShares DWA Basic Materials Momentum ETF (PYZ), which fell 1.7% for the week ended May 5, 2017. PYZ invests 2.7% of its holdings in Celanese. The other top holdings of the fund include Chemours (CC), Air Products and Chemicals (APD), and FMC (FMC) with weights of 5.5%, 4.0%, and 5.0%, respectively, as of May 5, 2017.