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What Wall Street Recommends for Celanese ahead of 3Q17 Earnings

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Analyst consensus

At present, 18 analysts actively cover Celanese (CE) stock. The number of analysts covering the stock has remained constant in the past three months. Among these analysts, 61% of the analysts recommend a “buy,” 33% of the analysts recommend a “hold,” while only 6% of the analysts have suggested a “sell.”

Since July 2017, analysts’ consensus target price on Celanese has been on an upward trend, moving from $100.24 to the present $105.18. However, as of October 9, 2017, CE stock closed at $107.54, which is 2.3% above the analyst consensus target price.

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Most analysts favor a “buy”

Celanese had two quarters of good earnings that beat the analysts’ expectations. The strong performance has resulted in management making an upward revision to its adjusted earnings per share to be in the range of 9% to 11%. The acquisitions of the nylon compound divisions of SO.F.TER Group and NILIT are expected to drive future growth. As a result, the majority of the analysts have recommended a “buy” on Celanese.

Individual brokerage recommendations

  • Cowen and Company (COWN) recommended a target price of $120.00 for Celanse, which implies a potential return of 15% over the closing price of $104.32 on September 27, 2017.
  • Jefferies has rated Celanese as a “buy” with a target price of $112.00, implying a potential return of 4.1% over the closing price of $107.54 as of October 9, 2017.
  • UBS (UBS) has given Celanese a target price of $100. However, the stock is trading 7.5% above the recommended target price as of October 9, 2017.
  • J.P. Morgan (JPM) has rated Celanese as “neutral” with a target price of $97.00. At present, Celanese is trading 10.9% above the recommended target price as of October 9, 2017.

Investors can hold Celanese indirectly by investing in the PowerShares DWA Basic Materials Momentum Portfolio (PYZ), which has invested 2.9% of its holdings in Celanese as of October 9, 2017.

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