BMO Capital analysts downgraded Celanese (NYSE:CE) from Market Perform to Underperform, lowering their price target on the stock from $138.00 to $76.00. This shift came after evaluating the company’s financial outlook following its highly leveraged acquisition of the Mobility & Materials (M&M) business.
The increased debt from the acquisition, combined with rising capacity in Celanese’s key markets and a weaker-than-expected macroeconomic environment, has tilted the company’s risk-reward balance unfavorably for equity holders, even after a recent decline in stock value. The need for Celanese to prioritize its debt obligations over equity returns adds further pressure on shareholder value. Additionally, concerns about potential risks to 2025 financial projections contributed to BMO’s decision to revise the stock’s rating and reduce its target price.