Jefferies has revised its rating for BASF (BASFY, Financial), changing it from a Buy to a Hold recommendation. The investment firm has also adjusted its price target for the chemical giant, reducing it to EUR 47 from the previous target of EUR 52. This decision reflects Jefferies' anticipation of continued softness in global chemical utilization rates.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Basf SE (BASFY, Financial) is $12.80 with a high estimate of $13.00 and a low estimate of $12.60. The average target implies an upside of 4.11% from the current price of $12.30. More detailed estimate data can be found on the Basf SE (BASFY) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Basf SE's (BASFY, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Basf SE (BASFY, Financial) in one year is $11.39, suggesting a downside of 7.36% from the current price of $12.295. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Basf SE (BASFY) Summary page.
BASFY Key Business Developments
Release Date: May 02, 2025
- Revenue: EUR17.4 billion, nearly at the same level as the prior year quarter.
- EBITDA Before Special Items: EUR2.6 billion, decreased by EUR87 million compared to Q1 2024.
- Adjusted EBITDA Margin Before Special Items: 6.5%, almost stable compared to the prior year quarter.
- EBIT Before Special Items: EUR1.7 billion, compared with EUR1.8 billion in the prior year quarter.
- Special Items in EBIT: Minus EUR467 million, mainly due to the sale of BASF's share in wind farms.
- Net Income: Decreased by EUR560 million to EUR808 million.
- Cash Flows from Operating Activities: Minus EUR982 million.
- Free Cash Flow: Minus EUR1.8 billion, compared with minus EUR1.5 billion in Q1 2024.
- Net Debt: Increased by EUR1.6 billion to EUR20.4 billion.
- Equity Ratio: 45.9%, unchanged and very healthy.
- Volume Decline in North America and US: 9% compared with the prior year quarter.
- Volume Increase in Asia Pacific: 2% and in Greater China by 7%.
- Volume Increase in Europe: 2%, while in Germany, they increased by 6%.
- Volume Increase in South America, Africa, and Middle East: 7% in Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BASF SE (BASFY, Financial) maintained its EBITDA before special items at about the same level as the prior year quarter, aligning with analyst estimates.
- The company has a strong manufacturing footprint with 90% of sales in Europe and North America coming from locally manufactured products, enhancing resilience.
- Sales volumes increased in Asia Pacific by 2% and in Greater China by 7%, indicating growth in these regions.
- BASF SE (BASFY) is investing in expanding production capacity for semiconductor-grade sulfuric acid, aligning with growing demand in Europe.
- The company maintains a strong balance sheet with a 45.9% equity ratio and a single A credit rating, ensuring favorable financing conditions.
Negative Points
- BASF SE (BASFY) experienced a 9% volume decline in North America and the United States due to challenging market conditions.
- The Surface Technologies and Agricultural Solutions segments saw considerable volume declines, impacted by lower precious metals trading and presales in previous quarters.
- EBITDA before special items decreased by EUR87 million compared to the prior year, with several segments recording lower earnings.
- Cash flows from operating activities were negative, with a free cash flow of minus EUR1.8 billion, reflecting seasonal and operational challenges.
- The company faces uncertainty from US tariffs and potential counter tariffs, impacting customer sentiment and market dynamics.
