BASF stock rating maintained at Underperform with €43 target
Investing.com | Editor Natashya Angelica
Published Mar 25, 2024 02:07PM ET
On Monday, Jefferies maintained its Underperform rating on BASF SE (BAS:GR) (OTC: OTC:BASFY) with a steady stock price target of €43.00. The assessment comes as the chemical giant prepares to disclose its first quarter results for 2024 on April 25. The firm increased its average EBITDA estimates for BASF by 2%, while keeping the price target unchanged and reiterating the Underperform rating.
Despite acknowledging early signs of improvement in certain market indicators, such as European gas and global chemical spreads, Jefferies expressed caution. The firm pointed out that the global chemical markets continue to face significant oversupply issues. These concerns are expected to limit the potential for sustainable earnings improvement for BASF.
Jefferies highlighted that while there are positive developments, the persistent oversupply in the market is likely to dampen the full extent of possible gains in BASF's financial performance. The firm's stance reflects a conservative outlook on the company's near-term prospects, despite some positive market movements.
The upcoming quarterly results from BASF will provide further insight into the company's financial health and the impact of market conditions on its performance. Investors and analysts will be watching closely to see if the early signs of improvement translate into stronger earnings for the chemical manufacturer.
Jefferies' report on BASF underscores the complexities of the global chemical industry, where supply dynamics play a critical role in shaping company outcomes. The firm's analysis indicates that while some market factors are turning favorable, overarching supply challenges remain a key consideration for BASF's performance moving forward.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.