BASF: Bank of America confirms rating

(CercleFinance.com) - Bank of America estimates that BASF's 2020 profit will be flat, assuming a 10% headwind from the coronavirus.
The consensus was expecting 15% growth.

The broker therefore confirms its "Underperform" rating on the share.

"Mid term capex was raised as BASF reposition into new products and geographies. This is the right strategy but has a cost," the broker says.

"Excessive capacity added by competitors makes us cautious in predicting significant margin improvement in 2021."

For the year 2020, BASF anticipates an operating profit excluding extraordinary items of between 4.2 billion and 4.8 billion euros, as well as sales of between 60 billion and 63 billion euros, based on estimated global economic growth of 2%.


Copyright (c) 2020 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.