Celanese Corporation (CE) faced a lowering of price targets due to
weak volumes, production issues, and soft demand. Despite operational headwinds, the company has been assessing recovery paths and strategies. This includes a recent focus on
margin recovery and
debt discipline, made possible by their newly secured
$1.75B credit facility, supplementing their $1.2B cash reserve. Despite the company delivering strong Q2 results, the share prices have plunged, prompting some to consider it as an
oversold value.
The company also faces a
securities fraud investigation, causing concerns among shareholders. Nevertheless,
key executives have made bold stock purchases, indicating confidence. On the other hand, their H2 outlook points to weakened demand, causing stock prices to tumble. Successful execution of
cost-cutting measures in Q2 boosted free cash flow to $300M. Amidst these circumstances,
Jim Cramer expressed dissatisfaction with the company's current trajectory.
CE's Q2 earnings have surpassed estimates, but some analysts do not see this growth as sustainable due to potential headwinds. Although company insiders are purchasing stock, some investors have been advised to exercise caution, especially in relation to future dividend payments.
Celanese Corporation CE News Analytics from Tue, 05 Nov 2024 08:00:00 GMT to Sat, 23 Aug 2025 10:49:02 GMT -
Rating -5
- Innovation 2
- Information -3
- Rumor -1
