RBC Capital Slashes Celanese (CE) Price Target, Citing Inventory Pressures

Celanese Corporation (NYSE:CE) ranks among the best mid-cap materials stocks to buy now. RBC Capital retained its Sector Perform rating on Celanese Corporation (NYSE:CE) while reducing its price target from $63 to $45 on August 14. According to the firm, the chemical company’s earnings estimate was impacted by weak near-term volume and production challenges, hinting at a substantial decline of almost 24% year-over-year in the third quarter of 2025.

RBC found a number of issues influencing Celanese’s performance, such as customer inventory management, low vehicle production (particularly in Europe), and tow destocking, all of which have an impact on earnings and the company’s capacity to reap the benefits of volume-dependent M&M integration.

The firm is cautious about material earnings improvement until demand improves, even though management has set a path to quarterly earnings of about $2 per share through self-help measures, including cost reductions of roughly $120 million in fiscal year 2025 and $50-100 million in fiscal year 2026.

Celanese Corporation (NYSE:CE), formerly known as Hoechst Celanese, is an American technology and specialty materials company that operates as a global chemical leader in the production of differentiated chemistry solutions used in most major industries and consumer applications.

While we acknowledge the potential of CE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.