(CercleFinance.com) – Stifel raises its advice on BASF from ‘hold’ to ‘buy’, with a price target raised from 47 to 59 euros.
The analyst believes that the modest forecast for 2024 and the reported weak business conditions in Q1-24 are already priced into the stock.
Oddo BHF now anticipates ‘progressive but constant signs of improvement’.
The broker indicates that 2024 will remain difficult but that trends are reversing with mid-cycle targets indicating upside potential.
For 2024, Oddo BHF estimates that EBITDA margins for the Verbund should be 17%, >23% at Agro and >15% at Coatings.
By adding Automotive Catalysts, the ambition results from a group EBITDA of 13 billion euros, according to calculations by Oddo BHF, compared to 7.7 billion euros in 2023.
Furthermore, ‘we assume that the group’s EBITDA can reach €9.5 billion in 2025 and €11 billion in 2026’, concludes the analyst, mentioning in particular the contribution to this performance of the new Verbund site in Zhanjiang.
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