In a report released today, Andreas Heine from Stifel Nicolaus maintained a Buy rating on BASF SE (0BFA – Research Report), with a price target of €56.00.
Andreas Heine has given his Buy rating due to a combination of factors including BASF SE’s strategic initiatives and financial outlook. The company is expected to see a modest increase in earnings across most segments, driven by strong performance in the Agro sector, which showed record high earnings and significant volume growth. Additionally, cost-saving measures are projected to yield substantial savings over the next two years, which should improve the company’s financial position.
Despite challenges in some core segments, BASF SE’s Surface Technology segment is anticipated to achieve double-digit EBITDA growth, and the company is planning strategic market approaches, such as the Coatings market entry and Agro IPO. Although the start-up costs for the new Verbund site in China are expected to impact short-term financials, the long-term outlook remains positive with expected improvements in free cash flow and net debt management. These factors, combined with a favorable dividend yield, contribute to the Buy rating.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a €57.00 price target.