BMO Capital analyst John McNulty downgrades $Celanese Corp (CE.US)$ to a sell rating, and adjusts the target price from $138 to $76.
According to TipRanks data, the analyst has a success rate of 54.3% and a total average return of 3.4% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Celanese Corp (CE.US)$'s main analysts recently are as follows:
The latest financial outcomes and subdued market projections have amplified apprehensions regarding the company's capacity to handle its debt obligations. An analyst has noted that increased leverage and these elevated risks suggest that the company's valuation multiple is likely to remain subdued for an extended period. The possibility of additional declines in the stock's value cannot be dismissed if market worries intensify.
The considerable leverage assumed by Celanese for the M&M acquisition, alongside increased capacity in its end markets and a less favorable macroeconomic climate, suggests a reasonably negative skew in the risk/reward profile for equity holders. The necessity to prioritize debt holders over equity investors is likely to further affect shareholder value.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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