UPDATE: Bank of America Raises PT on Celanese on Strong 1Q Results

In a report published Monday, Bank of America analyst Kevin W. McCarthy reiterated a Neutral rating on Celanese Corporation CE, and slightly raised the price target from $50.00 to $51.00. In the report, McCarthy noted, “We would like to see more evidence that earnings can grow from the level achieved in 1Q, so we remain on the sidelines following an 11.5% gain in the stock on Friday. (1) 1Q adjusted EPS of $1.14A ex items came in well above our $0.87E and the FC mean of $0.79E. Results included an acetate tow JV dividend of $24mn or $0.12 per share that was not included in our model; ex the dividend, EPS grew 29% y-y on a comparable basis; (2) management's macro outlook is cautious overall and also on China, where the trend is flat-to-down in 2Q; (3) Operating EBITDA of $345mn came in $52mn above our forecast, with about half due to dividend acceleration; (4) a methanol partner could be announced soon; (5) AEM operating EBITDA exceeded our forecast on positive mix in auto and medical; seasonality could be muted in 2Q; (6) AI segment EBITDA came in $10mn above our forecast as volumes rose 5% q-q in NA and Asia ex China.” Celanese Corporation closed on Friday at $47.10.