On March 21, 2025, KeyBanc analyst Aleksey Yefremov upgraded Celanese Corporation (NYSE: CE) from Sector Weight to Overweight, assigning a price target of $76. This upgrade came as a reflection of the analyst’s belief that Celanese’s earnings have bottomed and are set for a modest rebound in the near future. KeyBanc highlighted recent refinancing efforts as a critical step in lowering financial risks, positioning the company more favorably amid ongoing market uncertainties.
📌 The upgrade was further supported by optimism around potential geopolitical improvements, particularly easing tensions related to Ukraine, which could boost market conditions. Additionally, increased demand in China, supported by recent stimulus measures from Beijing, provides a brighter near-term outlook for Celanese’s key end markets, including automotive and industrial segments.
💰 Dividend Fundamentals:
🔸 Celanese recently announced a significant dividend reduction, cutting its quarterly payout by roughly 95%, down to just $0.03 per share, payable on March 11, 2025, to shareholders recorded as of February 25, 2025. This considerable dividend cut is part of a broader strategic decision to prioritize debt repayment and shore up the balance sheet amid an extended period of challenging demand conditions.
🔸 Despite this dividend cut, Celanese’s current dividend yield sits at approximately 3.74%. Although this yield is notably above its five-year historical average of around 2.06%, the increase largely reflects the sharp decline in the company’s stock price, which has fallen nearly 40% since the start of the year.
🔸 Investors attracted by the seemingly high yield should exercise caution. The dividend reduction signals management’s clear intention to improve liquidity and financial health, rather than providing immediate returns to shareholders.
In essence, the upgrade to Overweight by KeyBanc signifies increased confidence in Celanese’s ability to navigate short-term headwinds and achieve an earnings recovery. Yet, the substantial dividend cut underscores ongoing challenges. Investors should balance the improved outlook against the realities of reduced dividends and the company’s strategic adjustments aimed at long-term stability.