KeyBanc raised its price target on Celanese (NYSE:CE) to $59 from $57, maintaining an Overweight rating. The firm cited the company's turnaround execution and improved fundamentals in acetyls.
KeyBanc expects EBITDA to remain flat in coming years despite easing Iran tailwinds, with deleveraging driving continued earnings per share increases. Free cash flow generation remains strong, with the firm expecting the company to raise $700 million to $800 million.
KeyBanc views Celanese as one of its top ideas, citing attractive valuation on both EV/EBITDA and free cash flow yield metrics. At 2027 estimates, KeyBanc values the stock at 7x EV/EBITDA and 16% free cash flow yield. Celanese currently trades at 8.78x EV/EBITDA with a 16% free cash flow yield and a PEG ratio of 0.17.
The price target increase reflects higher 2027 forecasts. In separate recent news, Citi also raised its price target on Celanese to $65 from $58, maintaining a Buy rating.
In third-quarter 2026 results, Celanese reported adjusted earnings of $1.65 per share, beating the $1.56 estimate, but revenue reached $2.56 billion, falling short of the $2.62 billion projection.
Investors monitoring Celanese (CE) should track the company's EBITDA trends and free cash flow generation against the $700 million to $800 million range KeyBanc expects.