Braskem S.A. (NYSE:BAK) Stock Has Consensus Target Price of $2.83 According to Brokerages

Key Points

• Braskem has a consensus “Strong Sell” rating: Six of eight covering brokerages recommend selling, while two recommend holding. The average 12-month price target is $2.83.
• Analyst sentiment has deteriorated, with Citigroup and UBS downgrading the stock to “sell”; UBS also cut its price target from $4.00 to $1.50.
• Braskem shares opened at $1.52, near their 1-year low of $1.40 and well below their 50-day and 200-day moving averages. The company reported $4.20 billion in quarterly revenue but continues to show negative net margin and return on equity.

Shares of Braskem S.A. (NYSE:BAK - Get Free Report) have been given an average recommendation of "Strong Sell" by the eight brokerages that are presently covering the stock, Marketbeat reports. Six investment analysts have rated the stock with a sell rating and two have assigned a hold rating to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $2.83.

Several equities research analysts have issued reports on the stock. Citigroup cut shares of Braskem from a "neutral" rating to a "sell" rating in a research note on Thursday, June 25th. Weiss Ratings reissued a "sell (e+)" rating on shares of Braskem in a research note on Friday, July 17th. UBS Group downgraded shares of Braskem from a "neutral" rating to a "sell" rating and decreased their price target for the stock from $4.00 to $1.50 in a research note on Tuesday, September 15th. Finally, JPMorgan Chase & Co. cut shares of Braskem from an "overweight" rating to a "neutral" rating in a research note on Tuesday, June 30th.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in BAK. EverSource Wealth Advisors LLC raised its position in Braskem by 444.4% in the fourth quarter. EverSource Wealth Advisors LLC now owns 8,579 shares of the company's stock valued at $25,000 after purchasing an additional 7,003 shares during the period. Cetera Investment Advisers acquired a new stake in shares of Braskem during the 1st quarter worth about $51,000. SmartHarvest Portfolios LLC raised its holdings in Braskem by 49.7% in the 1st quarter. SmartHarvest Portfolios LLC now owns 54,466 shares of the company's stock valued at $199,000 after buying an additional 18,085 shares during the period. Citadel Advisors LLC acquired a new position in Braskem in the second quarter valued at about $89,000. Finally, Private Advisor Group LLC purchased a new position in Braskem during the first quarter worth about $157,000.

Braskem Price Performance

NYSE BAK opened at $1.52 on Friday. The company has a market cap of $607.87 million, a PE ratio of -0.63, a price-to-earnings-growth ratio of 0.10 and a beta of 1.56. The stock's 50 day simple moving average is $2.03 and its 200-day simple moving average is $3.11. Braskem has a 1-year low of $1.40 and a 1-year high of $5.39.

Braskem (NYSE:BAK - Get Free Report) last issued its quarterly earnings results on Friday, June 26th. The company reported $1.61 EPS for the quarter. Braskem had a negative return on equity of 67.75% and a negative net margin of 7.28%.The firm had revenue of $4.20 billion during the quarter. On average, equities research analysts anticipate that Braskem will post 1.58 EPS for the current fiscal year.

About Braskem

Braskem SA is a Brazilian petrochemical company headquartered in São Paulo. Established in 2002 through the combination of Odebrecht Química and the petrochemical company Copene, Braskem has developed into one of Latin America's major producers of thermoplastic resins and basic petrochemicals.

The company manufactures polyethylene, polypropylene and polyvinyl chloride (PVC), which are used in packaging, construction, automotive components, consumer goods and other industrial applications.

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