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Celanese Corp CE

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Raising Our Celanese FVE to $135 on Higher Near-Term Outlook; Shares Remain Overvalued

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

Celanese delivered a strong start to the year, as adjusted EBIT was up over 60% year on year during the quarter. The gains were driven by higher volumes and prices in the engineered materials and acetyl chain segments, partially offset by lower volumes in the acetate tow business. Management raised its guidance for the year to an adjusted EPS midpoint of $13, up from the $11.25 midpoint announced at the company's investor day in March. In light of the first-quarter results, we think the revised guidance is achievable and have increased our near-term outlook for the company. After updating our model to reflect this outlook, we raise our fair value estimate to $135 per share from $125. Our narrow moat rating is unchanged.

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Company Profile

Business Description

Celanese is one of the world's largest producers of acetic acid and its downstream derivative chemicals, which are used in various end markets, including coatings and adhesives. The company also produces specialty polymers used in the automotive, electronics, medical, and consumer end markets as well as cellulose derivatives used in cigarette filters.

Contact
222 West Las Colinas Boulevard, Suite 900N
Irving, TX, 75039-5421
T +1 972 443-4000
Sector Basic Materials
Industry Chemicals
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 7,658

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