Celanese's $1B Debt Paydown Possible On Shutting Food Ingredients JV, Working Capital Reduction: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
RBC Capital Markets analyst Arun Viswanathan reiterated an Outperform rating on Celanese Corporation (CE), raising the price target to $145 from $128. Despite a 2% decrease in net sales in Q2, the company is on track to pay down over $1 billion in debt by FY24. The analyst believes this is possible through cash repatriation, debt re-domiciling efforts, the closing of its Food Ingredients JV, and a working capital reduction plan. However, the analyst lowered the FY23 EPS estimate to $9-$10 and reduced FY23 and FY24 EBITDA estimates.
August 10, 2023 | 7:09 pm
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Celanese Corporation's price target has been raised by RBC Capital Markets analyst Arun Viswanathan to $145 from $128. The company is expected to pay down over $1 billion in debt by FY24, despite a 2% decrease in net sales in Q2. However, the FY23 EPS estimate has been lowered to $9-$10 and FY23 and FY24 EBITDA estimates have been reduced.
The raised price target indicates the analyst's positive outlook on the company, which could potentially lead to an increase in the stock price. The company's plan to pay down over $1 billion in debt by FY24 also shows strong financial management, which is a positive sign for investors. However, the lowered FY23 EPS and EBITDA estimates could potentially have a negative impact on the stock price.
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