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UPDATE: Morgan Stanley Maintains Equal-weight on Celanese on Methanol JV Announcements


In a report published by Morgan Stanley Wednesday, analyst Vincent Andrews maintained the rating on Celanese (NYSE: CE) of Equal-Weight.

In the report, Morgan Stanleynoted, "Celanese's announcement of the formation of a new methanol JV is in line with our expectations, as outlined in our 2012 initiation. Nonetheless, given the methanol JV is to replace lost volumes from the expiring SCC contract in 2015, Celanese will be recognizing a cash outflow of $300M with no incremental run-rate earnings. We estimate Celanese's existing below market contract (expiring in 2015) adds $159M in EBITDA per year, and its new methanol plant start-up will add $144M in EBITDA per year (assuming $4 gas)."

Celanese closed Tuesday at $48.41.


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