(News Bulletin 247) – UBS reiterates its ‘sell’ recommendation on BASF despite a price target raised from 40 to 43 euros, a new target which still implies a downside potential of 11% for the title of the German chemicals giant.
Returning to the publication of its annual results, the broker recognizes 2023 objectives broadly in line with the consensus and considers that the restructuring of European assets announced on this occasion “seems reasonable”.
UBS nevertheless points to a five-year investment cycle around 20% higher than the consensus, which according to him ‘means that the trajectory of ROCE is more uncertain’. ‘Asset sales will be necessary for the dividend in 2023’, he further warns.
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