JPMorgan upgrades Celanese on valuation appeal
Investing.com -- JPMorgan has upgraded specialty chemicals producer Celanese to an “Overweight” rating from “Neutral,” arguing that the company’s recent share-price decline presents an attractive entry point for investors.
In a research note published Tuesday, JPMorgan analyst Jeffrey J. Zekauskas set a December 2026 price target of $68 per share, compared with Celanese’s closing price of $57.17 on May 11. The stock has fallen about 14% from nearly $69 last week, despite broader market gains.
The bank said the selloff was driven by investor disappointment over free cash flow expectations and easing geopolitical tensions surrounding Iran, which had previously supported commodity pricing.
JPMorgan expects Celanese to benefit from sustained tightness in global acetyl chemical markets, particularly in products such as acetic acid, vinyl acetate monomer (VAM), and vinyl acetate ethylene (VAE). The firm forecasts 2026 earnings per share of $6.35, up sharply from $4.02 in 2025.
The report highlighted persistent supply-chain disruptions and elevated chemical prices as key drivers for earnings growth. Chinese spot acetic acid prices surged from roughly $385 per ton in late February to nearly $700 in early April before easing to around $450, while VAM prices climbed from $865 per ton to as high as $1,800 before moderating.
JPMorgan said Celanese’s large North American manufacturing base gives it a cost advantage in sourcing methanol and ethylene, critical feedstocks for acetyl products. The bank expects the company’s Acetyl Chain division to deliver meaningful profit growth in 2026.
Celanese also recently raised its 2026 free cash flow outlook to between $700 million and $800 million, up from its earlier guidance of $650 million to $750 million. JPMorgan estimates the company could generate free cash flow yields of 11%–13% in 2026 and 2027.