BASF: Stiffel still on hold
(CercleFinance.com) - Stifel is maintaining its "Hold" rating on BASF shares, although has reduced its target price for them to 50 euros (from 56 euros).
"We have become more cautious about macroeconomic trends," explains the analyst to justify lowering his price target "based on expected earnings for 2023.
Stifel expects the decline in demand in Europe to accelerate. "In addition, upstream price pressure is evident".
However, the analyst says, "what is bad for earnings should turn out to be positive for FCF generation".
Finally, the share price seems to have stabilised at a low level. "The current share price reflects EPS of EUR 5.3 and EBITDA of EUR 9.0bn, which is 10% and 7%, respectively, below our forecast for 2023," the analyst says.
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