Analyst Note| Seth Goldstein, CFA |
Celanese reported strong first-quarter results as operating EBITDA was up 43% year over year versus the prior-year quarter. The growth was driven by double-digit volume and price increases. Given the strong start to the year, we have increased our near-term outlook for Celanese. We expect acetyl chain profits, while still below 2021 levels, will come in higher than we had forecast and expect a slower moderation to midcycle levels. Having updated our model to reflect this change, we're raising our fair value estimate to $165 per share from $150. Our narrow moat rating is unchanged.