Piper Sandler Upgrades Celanese Corporation to Neutral, Moderated Downside Risk Cited
November 24, 2023
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Celanese Corporation ($NYSE:CE) is a global technology and specialty materials company that produces a wide range of products essential to everyday life. From automotive applications to consumer goods, Celanese provides products for diverse industries and end-markets. Recently, Piper Sandler has upgraded its rating of Celanese Corporation from negative to neutral, citing moderated downside risk. According to Piper Sandler’s analysts, the upgraded rating is based on a reduced risk of potential losses in the near term. They believe that Celanese’s balance sheet and liquidity position are strong and, as such, should be able to withstand any potential headwinds.
Additionally, the analysts cited Celanese’s diversified business model and its strong competitive position as reasons for their more optimistic outlook. Overall, Piper Sandler’s upgrade of Celanese Corporation is seen as a positive step and demonstrates optimism in the future of the company. This could potentially be a signal for other investors to begin investing in the company or holding onto their current investments. In any case, it is clear that Piper Sandler has faith in the future of Celanese Corporation and its ability to continue providing quality products to its customers.
Share Price
This came after the stock opened at $130.0 and closed at $130.4, which was a slight 0.1% decrease from the prior closing price of 130.6. The move positions the stock favorably for investors, as it is now seen as a safer option with less risk of losses. With a broader focus on upside potential, investors may find Celanese Corporation to have more attractive prospects in the long-term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Celanese Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 10.72k | 2.03k | 14.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Celanese Corporation. More…
| Operations | Investing | Financing |
| 1.61k | -10.68k | 728 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Celanese Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 25.54k | 18.59k | 59.63 |
Key Ratios Snapshot
Some of the financial key ratios for Celanese Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.9% | 14.1% | 15.8% |
| FCF Margin | ROE | ROA |
| 9.6% | 17.4% | 4.1% |
Analysis
At GoodWhale, we have conducted an analysis on the fundamentals of CELANESE CORPORATION. According to the Star Chart, CELANESE CORPORATION has a high health score of 8/10, suggesting that it is capable of sustaining future operations in times of crisis due to its strong cashflows and debt. Although CELANESE CORPORATION has strong assets and dividend strength, their growth and profitability levels are only medium. Based on this analysis, we can conclude that CELANESE CORPORATION is classified as a ‘cheetah’, meaning they are companies that have achieved high revenue or earnings growth, but are considered less stable due to lower profitability. We believe that investors who are looking for growth and are willing to take a bit higher risk may be interested in such companies. More…
Peers
Celanese’s product portfolio includes acetyl intermediates, plastics, films, and synthetic fibers. The company operates in two segments: Advanced Engineered Materials and Industrial Specialties. Celanese’s competitors include Dow Inc, DuPont de Nemours Inc, and Showa Denko KK.
– Dow Inc ($NYSE:DOW)
Dow Inc is a publicly traded company with a market capitalization of $35.24 billion as of 2022. The company’s return on equity is 26.96%. Dow Inc is a diversified chemical company that produces and sells chemicals, plastics, and agricultural products. The company operates in more than 80 countries and employs approximately 36,000 people.
– DuPont de Nemours Inc ($NYSE:DD)
DuPont de Nemours Inc is a large chemical company with a market cap of 34.47B as of 2022. The company has a ROE of 6.8%. DuPont is a science company that delivers science-based solutions to make people’s lives better, healthier and safer.
– Showa Denko KK ($TSE:4004)
Show Denko KK is a Japanese company that manufactures and sells chemicals and materials. The company has a market capitalization of 406.88 billion as of 2022 and a return on equity of 7.29%. Showa Denko is a diversified company with businesses ranging from petrochemicals to electronics. The company is one of the largest producers of aluminum oxide in the world and also produces and sells a variety of other chemicals and materials.
Summary
Investment analysis firm Piper Sandler recently upgraded their rating of CELANESE Corporation from Underweight to Neutral. This change in rating was attributed to moderated downside risk and potential upside catalysts. Piper Sandler believes CELANESE Corporation offers a positive value proposition for long-term investors, despite some near-term challenges.
They anticipate the company’s cost-leading strategies, strong balance sheet and global presence will enable it to deliver on its long-term strategy. Despite turbulent market conditions, Piper Sandler states CELANESE Corporation has the potential to perform above its peers and be rewarded with higher stock prices in the future.
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