BASF Can Still Create Value Despite Short-Term Stock Volatility
Dow Jones08-10
0758 GMT - BASF's share price will likely remain volatile in the short term, but the market is missing longer-term potential for value creation, Bernstein analysts James Hooper and Sebastien Afoy say in a research note. At its integrated Verbund production sites, volumes are expected to grow and cost savings will more than offset negative but improving pricing, the analysts say. The German conglomerate should also see a catalyst for value creation from the IPO of its agricultural solutions business, the analysts say. "If one believes either of these two tenets, then BASF appears undervalued, and we believe the stock currently prices in no growth," they add. Shares trade 0.5% lower at 51.26 euros.
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