Celanese price target lowered to $95 from $130 at BofA

BofA lowered the firm’s price target on Celanese (CE) to $95 from $130 and keeps an Underperform rating on the shares. A “disappointing print and outlook” has “given rise to additional risks for the enterprise,” the analyst contends following earnings. Valuation may start providing some support, but the firm sees several reasons to maintain an Underperform rating, including balance sheet risk; limited earnings recovery next year; additional concerns on acetyl margins; and a major risk of multiple de-rating given investor disappointment with recent results and the 95% dividend cut.