BASF: balance has shifted to the upside, BarCap says.
(CercleFinance.com) - Barclays maintains its "equal weight" rating on BASF, although now thinks that the balance of risk has shifted "more to the upside" following the recent fall in the share's valuation.
The brokerage firm says it expects the chemical company to raise its outlook when it unveils its second-quarter results on 27 July.
However, Barclays says it is not sure to what extent this will improve the market sentiment and reverse the share's recent underperformance (-10% versus Barclays's coverage universe over the past three months).
The broker believes the stock's underperformance has been driven by the combination of petrochemical prices retreating, renewed worries around the auto cycle, weaker oil and a stronger euro.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The brokerage firm says it expects the chemical company to raise its outlook when it unveils its second-quarter results on 27 July.
However, Barclays says it is not sure to what extent this will improve the market sentiment and reverse the share's recent underperformance (-10% versus Barclays's coverage universe over the past three months).
The broker believes the stock's underperformance has been driven by the combination of petrochemical prices retreating, renewed worries around the auto cycle, weaker oil and a stronger euro.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.