BASF: Stifel raises target price

(CercleFinance.com) - Stifel reiterates its "buy" rating on BASF shares, having increased its target price for them from 87 euros to 93 euros, in particular due to the value of the Solenis disposal and higher assumptions for free cash flow.


"Even after a normalization, upstream margins should stay at a favorable level, in our view. While 2021 might be the peak, 2022 should still be considerably above mid-cycle earnings," the broker said.

Stifel acknowledges that "earnings upside in 2021 is not a catalyst for the stock", but expects "sentiment to improve in Q4-21 as the upstream margin potentially normalises to a still attractive level".


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