12:45 PM EST, 11/11/2024 (MT Newswires) -- Celanese's (CE) recent results and weaker market outlook have created more concerns about the company's ability to manage its debt load, UBS Securities said in a note on Monday.

Celanese's multiple "will stay compressed for the foreseeable future, and we can't rule out further stock downside if market concerns increase," UBS said.

UBS said that the anticipated synergies with DuPont's ( DD ) nylon-engineered plastics business have been offset by decreased profit margins due to the changing product mix, cultural integration issues, or rising competition from China and Asia.

With global acetic acid capacity forecast to grow and potential declines in global energy prices, cost pressures for Celanese could increase, according to the note. The company could need about $2 billion in additional funding by 2026 to 2028 if the situation does note improve.

UBS downgraded its rating on Celanese to neutral from buy and reduced the price target to $97 from $161.

Shares of the company were down 4% in recent trading.

Price: 81.36, Change: -3.44, Percent Change: -4.06