Celanese upgraded at RBC on 'trough fundamentals and deleveraging'

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Celanese (NYSE:CE) +6.7% in Wednesday's trading after RBC Capital upgraded shares to Outperform from Sector Perform with a $125 price target, up from $98, saying it expects fundamentals will improve given "better than expected M&M integration, double-digit growth anticipated in EM, a Q1 2023 trough in AC EBIT, and solid deleveraging."

The company "could achieve or exceed the $800M-plus EBIT target" in FY 2024, RBC analyst Arun Viswanathan said in raising his 2023 and 2024 EBITDA estimates to $3.2B and $3.5B respectively from $3B and $3.3B previously.

Celanese (CE), whose shares are down 37% during the past year and 16% off a September low, can reach its goal of deleveraging its debt to 3x EBITDA within two years, Ellsworth Research writes in an analysis published on Seeking Alpha.