12 Best Chemical Stocks to Buy According to Analysts

5) Celanese Corporation (NYSE:CE)

Average Upside Potential: 35.7%

Number of Hedge Fund Holders: 15

Celanese Corporation (NYSE:CE) is a chemical and specialty materials company, focused on manufacturing and selling high-performance engineered polymers in the US and internationally. BofA upgraded the company’s shares to “Buy” from “Underperform,” offering a price target of $88. The analysts now see signs of a bottoming acetyls market and improved demand ahead, with FCF supporting leverage. As per the analyst, Celanese Corporation (NYSE:CE) can address its leverage problems without major dilutive actions.

Notably, the positive trends consist of improved demand in India and a supply response in China, with a decline in operating rates from multi-year highs. Amidst worries about supply growth impacting margin recovery, BofA expects that the worst is now over. The US Chemicals sector has an optimistic outlook, highlighting that the current headwinds might be transitory. Celanese Corporation (NYSE:CE)’s robust position in high-value, high-margin segments, like acetyls and engineered materials, can act as a key strength that can help tackle a challenging environment.

A recovery in industrial markets, mainly in the automotive and construction sectors, can offer a significant upside for Celanese Corporation (NYSE:CE). The recovery is anticipated to drive faster-than-expected earnings growth. The acquisition of DuPont’s Mobility & Materials (M&M) business can also act as a critical growth driver. The expansion of product portfolio and market presence seen through this acquisition place Celanese Corporation (NYSE:CE) as a more comprehensive solutions provider in high-growth end markets.