BASF: Barclays cuts target price

(CercleFinance.com) - Barclays has reinstated its "equal weight" rating on the BASF stock, having cut its corresponding target price from 80 euros to 75 euros, after the German chemicals group cut its forecast for operating profit in 2019 by 12%.


"BASF trades on one of the highest dividend yields since the financial crisis," the broker points out, which sees an indication that the share's valuation seems to have bottomed out, given a 2019 P/E of 11x, i.e. about 15% below its historical average.

"While we think that the forecasts are largely de-risked now, we are cognisant of the tough trading environment," it says, adding that " the shares have re-rated significantly against the other more cyclical EU chemical names".



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