Celanese's (CE) earnings per share for Q4 of 2025 is expected to be at the low end of its guidance due to margin pressure in acetyls, which is likely to continue facing challenges in 2026, Morgan Stanley said in a Tuesday research note.

The brokerage lowered its Q4 EPS guidance to $0.85 from $0.89, compared with Celanese's guidance of $0.85 to $1, amid high energy costs, weak demand, and oversupply, according to the note. The Q4 results are due on Feb. 17.

For 2026, earnings before interest, taxes, depreciation, and amortization are likely to improve in 2026, "but likely not much more than the company's $100 million cost out program," Morgan Stanley said.

The acetate tow is projected to face headwinds, while engineered materials could see improvement from high-impact projects, but it will need to offset the MicroMax business divestment, Morgan Stanley wrote.

Morgan Stanley said it resumed its coverage of the stock with an equal weight rating and a price target of $50 per share.

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