Key Highlights:
- BASF (BASFY, Financial) shares decline following Jefferies' downgrade and forecast adjustments.
- Analysts set an average price target suggesting moderate upside potential.
- GuruFocus metrics indicate a cautionary stance due to potential downside.
BASF (BASFY) Faces Challenges Amid Downgrade
In a recent development, shares of BASF (BASFY) experienced a 0.7% decline as Jefferies adjusted its rating from "Buy" to "Hold". This downgrade accompanies a revised price target of €47, reflecting significant challenges in upstream product spreads. Additionally, analysts have slashed their 2023 earnings forecasts by 11% due to growing demand uncertainties and rising cost pressures, casting a shadow over BASF's financial outlook.
Wall Street Analysts' Predictions
Price Target Insights
According to projections from two analysts, the one-year average price target for BASF (BASFY, Financial) stands at $12.80. This range includes a high estimate of $13.00 and a low estimate of $12.60, suggesting a potential upside of 5.13% from the current trading price of $12.18. For further elaboration on these price targets, investors can visit the Basf SE (BASFY) Forecast page.
Brokerage Recommendations
The consensus recommendation from two brokerage firms positions BASF (BASFY, Financial) with an "Hold" rating, averaging at a score of 3.0 on a scale where 1 indicates a Strong Buy, and 5 suggests a Sell. This cautious stance reflects the broader uncertainties facing the company.
GuruFocus' Valuation Perspective
GuruFocus estimates project the GF Value for BASF (BASFY, Financial) in one year at $11.39, which implies a possible downside of 6.45% from the current price of $12.175. The GF Value reflects the fair market value based on historical trading multiples and anticipated business performance. Additional details are accessible on the Basf SE (BASFY) Summary page.
