Braskem S.A. (NYSE:BAK) Stock Has Average Price Target of $2.56 According to Analysts

Key Points

• Analysts are strongly bearish on Braskem: five of eight brokerages rate the stock a sell and three recommend holding it, resulting in an average “Strong Sell” rating and a $2.56 twelve-month price target.
• BAK opened at $1.71, below its 50-day moving average of $1.80 and 200-day average of $2.80, with a twelve-month trading range of $1.40 to $5.39.
• Recent analyst actions included downgrades from Citigroup, HSBC, and JPMorgan Chase; HSBC cut its price target from $6.50 to $1.50. Braskem reported quarterly revenue of $4.20 billion and negative profitability metrics.

Braskem S.A. (NYSE:BAK - Get Free Report) has been given an average rating of "Strong Sell" by the eight brokerages that are covering the company, Marketbeat.com reports. Five research analysts have rated the stock with a sell recommendation and three have assigned a hold recommendation to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $2.56.

Several brokerages have weighed in on BAK. Citigroup downgraded Braskem from a "neutral" rating to a "sell" rating in a report on Thursday, June 25th. Weiss Ratings reissued a "sell (e+)" rating on shares of Braskem in a research report on Thursday. HSBC downgraded Braskem from a "buy" rating to a "hold" rating and lowered their price target for the company from $6.50 to $1.50 in a report on Monday, September 28th. JPMorgan Chase & Co. cut shares of Braskem from an "overweight" rating to a "neutral" rating in a research report on Tuesday, June 30th. Finally, Wall Street Zen upgraded shares of Braskem to a "hold" rating in a research note on Saturday.

Hedge Funds Weigh In On Braskem

Large investors have recently added to or reduced their stakes in the company. Cetera Investment Advisers bought a new position in shares of Braskem in the 1st quarter valued at about $51,000. Citadel Advisors LLC bought a new position in shares of Braskem in the second quarter valued at about $89,000. Ramsey Quantitative Systems acquired a new stake in Braskem during the second quarter worth approximately $155,000. Private Advisor Group LLC bought a new position in Braskem during the 1st quarter worth $157,000. Finally, Engineers Gate Manager LP raised its stake in Braskem by 192.8% in the 2nd quarter. Engineers Gate Manager LP now owns 68,198 shares of the company's stock worth $166,000 after purchasing an additional 44,905 shares in the last quarter.

Braskem Stock Up 2.7%

BAK opened at $1.71 on Tuesday. The company has a 50-day moving average price of $1.80 and a 200 day moving average price of $2.80. Braskem has a twelve month low of $1.40 and a twelve month high of $5.39. The company has a market cap of $679.61 million, a PE ratio of -0.70, a price-to-earnings-growth ratio of 0.10 and a beta of 1.56.

Braskem (NYSE:BAK - Get Free Report) last issued its earnings results on Friday, June 26th. The company reported $1.61 earnings per share for the quarter. The business had revenue of $4.20 billion for the quarter. Braskem had a negative return on equity of 67.75% and a negative net margin of 7.28%. As a group, sell-side analysts expect that Braskem will post 1.58 earnings per share for the current year.

Braskem Company Profile

Braskem SA is a Brazilian petrochemical company headquartered in São Paulo, Brazil. The company produces basic chemicals and thermoplastic resins used in packaging, construction, automotive components, consumer goods, agriculture, and other industrial applications.

Its product portfolio includes olefins such as ethylene and propylene, polyolefins including polyethylene and polypropylene, polyvinyl chloride (PVC), caustic soda, and other chemical intermediates. Braskem also markets renewable polyethylene under the “I'm green” brand, which is made from sugarcane-based ethanol.

Established in 2002 through the consolidation of petrochemical assets in Brazil, Braskem expanded internationally through subsequent acquisitions and investments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.