Celanese downgraded to Underperform from Market Perform at BMO Capital

BMO Capital downgraded Celanese (CE) to Underperform from Market Perform with a price target of $76, down from $138. With the significant amount of leverage Celanese took on to make the M&M acquisition, compounded by the addition of capacity in its end markets and a weaker than expected macro environment, the company’s risk/reward profile for the equity holders “now skews reasonably negative,” the analyst tells investors in a research note. The firm says Celanese’s need to put the debt holders ahead of its equity investors will further impact shareholder value.