KeyBanc Starts Celanese (CE) at Overweight
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KeyBanc initiated coverage on Celanese (NYSE: CE) with a Overweight rating and a price target of $80. Analyst Michael J. Sison highlighted solid earnings growth.
"We believe CE has an operating strategy that can generate steady growth, high margins and returns on capital at the upper tiers of the specialty chemical sector. CE is on track to generate solid EPS growth in 2016E with potential of $7.70+ by 2018E with upside via acquisitions or aggressively returning cash to shareholders," said Sison.
The analyst added, "Despite a very low growth macro, we believe that CE can generate attractive HSD EPS growth in 2016E vs. 2015 with a good portion under management’s control via cost savings, stock buyback and focused growth from its high-quality Advanced Engineered Materials franchise. Since the last downturn, CE has generated impressive EPS growth annualizing ~25% (2009-2015)."
Shares of Celanese closed at $65.86 yesterday.
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