Deutsche Bank Reiterates Buy On Celanese Following Strong Q314 Release


In a research report sent to investors today, Deutsche Bank analyst David Begleiter reiterated a Buy rating on Celanese (NYSE:CE) with a $72 price target, following the company’s solid third-quarter results, as EPS beat by $0.18, or 13%, and implied Q4 EPS guidance of $1.13-$1.23 was 7% (midpoint) above consensus of $1.10.

Begleiter wrote, “The confident, albeit early, guidance is underpinned by structural improvements and productivity/cost actions which should help offset headwinds in ’15 from lower VAM earnings (following outage driven strength in ’14) and a $100MM, or $0.50, headwind from the expiry of a low-cost methanol contract. With fears of down EPS in ’15 alleviated, notwithstanding record ’14E EPS (+24% YoY) and record Acetyl Intermediates earnings (+71% YoY) and valuation an attractive 9.9x ’15E EPS, we reiterate our Buy rating.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst David Begleiter has a total average return of 6.1% and a 67.8% success rate. Begleiter has a -0.5% average return when recommending CE, and is ranked #565 out of 3337 analysts.

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