BASF: Berenberg cuts target ahead of second-quarter results
(CercleFinance.com) - Berenberg analysts have revised their earnings estimates and target price for BASF on Tuesday, expecting a "bad" second-quarter from the chemical industry giant.
The German broker has lowered its target price on the stock from 79 euros to 75 euros, while maintaining its "buy" rating.
In a note to clients, Berenberg said "the weak environment for industrial production and autos in China, maintenance shutdowns at chemicals sites in Texas and Antwerp and exceptionally weak volume development in agriculture on the back of US flooding are all going to push quarterly numbers well below the current range of consensus."
Hence, the broker recommends potential buyers to wait until after the results as it otherwise sees a "good equity story."
BASF has several self-help levers to pull, Berenberg pointed out, citing a restructuring story that is gaining momentum, additional cost savings, and potential "healthy interest" in the company's construction chemicals business.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The German broker has lowered its target price on the stock from 79 euros to 75 euros, while maintaining its "buy" rating.
In a note to clients, Berenberg said "the weak environment for industrial production and autos in China, maintenance shutdowns at chemicals sites in Texas and Antwerp and exceptionally weak volume development in agriculture on the back of US flooding are all going to push quarterly numbers well below the current range of consensus."
Hence, the broker recommends potential buyers to wait until after the results as it otherwise sees a "good equity story."
BASF has several self-help levers to pull, Berenberg pointed out, citing a restructuring story that is gaining momentum, additional cost savings, and potential "healthy interest" in the company's construction chemicals business.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.