(News Bulletin 247) – Credit Suisse confirms its ‘underperformance’ opinion on BASF while lowering its price target from 46 to 44 euros, due to higher assumptions for capital expenditure and lower for growth medium term.
“A decline in European end markets, a structurally higher cost base and capacity additions from competitors in preferred geographies are eroding BASF’s leadership position in global chemical markets,” he said.
The broker also points out that its geographic redeployment strategy in a difficult general context (weak demand, rising rates, geopolitics) means, in its opinion, that its dividend should not be covered by its free cash flow before 2026.
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