(CercleFinance.com) – Baader Helvea announced on Tuesday that it has raised its recommendation on BASF stock from ‘reduce’ to ‘accumulate’, anticipating an improvement in the German chemical company’s momentum after its second-quarter low.
According to the Swiss bank, the title has a potential for revaluation for long-term investors due to the defensive nature of its business portfolio.
Therefore, Baader said he expects the group’s free cash flow (FCF) to improve in 2023, which should dispel concerns about a potential dividend cut.
Beyond 2023, the Swiss establishment recognizes that a question mark remains concerning the sustainability of the same dividend in view of the desire expressed by the group to increase its investments.
Its price target remains at 53 euros.
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