Braskem S.A. (NYSE:BAK) Given Consensus Rating of "Strong Sell" by Brokerages

Key Points

• Braskem currently has a consensus analyst rating of “Strong Sell”, based on coverage from eight analysts: five rate it a sell and three a hold. The average 12-month price target is just $3.40.
• Several firms recently turned more bearish on the stock, including Bradesco Corretora, Bank of America, and Citigroup, all of which cut their ratings or price targets. Zacks Research also downgraded Braskem from strong-buy to hold.
• Despite the negative sentiment, Braskem recently reported better-than-expected quarterly results, with EPS of $0.69 versus estimates of $0.21 and revenue of $3.51 billion versus expectations of $3.39 billion. The stock rose 3% to $2.60, though it remains below its 50-day and 200-day moving averages.

Braskem S.A. (NYSE:BAK - Get Free Report) has received a consensus recommendation of "Strong Sell" from the eight analysts that are currently covering the company, Marketbeat.com reports. Five equities research analysts have rated the stock with a sell recommendation and three have assigned a hold recommendation to the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $3.40.

BAK has been the topic of several analyst reports. Bradesco Corretora lowered shares of Braskem from an "outperform" rating to an "underperform" rating and set a $1.50 price target on the stock. in a report on Tuesday, April 21st. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Braskem in a report on Monday, April 20th. Bank of America cut Braskem from a "neutral" rating to an "underperform" rating and set a $2.80 price objective for the company. in a report on Thursday, March 26th. Zacks Research lowered shares of Braskem from a "strong-buy" rating to a "hold" rating in a report on Monday, May 18th. Finally, Citigroup cut shares of Braskem from a "neutral" rating to a "sell" rating in a research report on Thursday, June 25th.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC boosted its holdings in shares of Braskem by 444.4% in the 4th quarter. EverSource Wealth Advisors LLC now owns 8,579 shares of the company's stock worth $25,000 after acquiring an additional 7,003 shares in the last quarter. Quadrant Capital Group LLC raised its position in Braskem by 222.1% in the 4th quarter. Quadrant Capital Group LLC now owns 12,809 shares of the company's stock valued at $38,000 after purchasing an additional 8,832 shares during the last quarter. Signaturefd LLC raised its position in Braskem by 50.1% in the 4th quarter. Signaturefd LLC now owns 13,524 shares of the company's stock valued at $40,000 after purchasing an additional 4,513 shares during the last quarter. Cetera Investment Advisers acquired a new position in Braskem in the first quarter worth $51,000. Finally, Evergreen Capital Management LLC acquired a new position in Braskem in the fourth quarter worth $44,000.

Braskem Stock Up 3.0%

Shares of BAK stock traded up $0.07 during mid-day trading on Friday, reaching $2.60. The stock had a trading volume of 1,282,962 shares, compared to its average volume of 2,724,604. Braskem has a one year low of $2.25 and a one year high of $5.39. The firm has a market cap of $1.03 billion, a PE ratio of -0.61, a P/E/G ratio of 0.06 and a beta of 1.61. The firm's 50 day simple moving average is $3.64 and its 200 day simple moving average is $3.65.

Braskem (NYSE:BAK - Get Free Report) last released its quarterly earnings data on Thursday, May 14th. The company reported $0.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.21 by $0.48. The business had revenue of $3.51 billion for the quarter, compared to analysts' expectations of $3.39 billion. Braskem had a negative return on equity of 23.17% and a negative net margin of 13.72%. Sell-side analysts forecast that Braskem will post 2.79 earnings per share for the current fiscal year.

About Braskem

Braskem NYSE: BAK is a leading integrated petrochemical company based in São Paulo, Brazil, and holds the distinction of being the largest thermoplastic resins producer in Latin America. The company operates across the entire value chain, from feedstock sourcing and polymer production to distribution and recycling. Braskem's comprehensive approach to petrochemical manufacturing enables it to serve a diverse set of end markets with a broad portfolio of products.

Braskem's core product lines include polypropylene, polyethylene and polyvinyl chloride (PVC), which are used in industries such as packaging, automotive, construction and electrical & electronics.

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