Braskem S.A. (NYSE:BAK) experienced a notable increase in its share price, rising by 8.7% during mid-day trading on Friday. The stock reached a high of $3.12 before closing at $3.1750. Approximately 460,278 shares exchanged hands, which is a significant decrease of 53% from the average daily trading volume of 970,162 shares. This rise comes after the stock previously closed at $2.92.
Analyst Ratings and Market Reactions
Braskem has been the subject of various research reports recently, with analysts taking differing views on the company’s prospects. On October 10, 2023, Citigroup downgraded Braskem from a “buy” rating to a “hold” rating. Similarly, UBS Group also lowered its rating from “buy” to “neutral” and adjusted the price target for the stock from $5.10 to $3.80 in a report dated September 26, 2023.
Conversely, Zacks Research upgraded Braskem from a “hold” to a “strong-buy” rating on December 29, 2023. On the other hand, Weiss Ratings reiterated a “sell (e+)” rating on October 8, 2023, while Santander downgraded the stock from “neutral” to “underperform” on October 16, 2023. Overall, one investment analyst has given the stock a Strong Buy rating, four analysts have assigned a Hold rating, and two have rated it as a Sell. According to MarketBeat, the consensus target price for Braskem stands at $4.40.
Quarterly Earnings and Financial Performance
Braskem released its quarterly earnings results on November 12, 2023, reporting an earnings per share (EPS) of ($0.02), which surpassed analysts’ expectations of ($0.48) by $0.46. The company also posted revenue of $3.25 billion for the quarter, slightly exceeding the consensus estimate of $3.23 billion. Analysts forecast that Braskem will post an EPS of ($0.77) for the current fiscal year.
In recent months, institutional investors have actively adjusted their positions in Braskem. Jump Financial LLC significantly increased its stake by 607.1% in the second quarter, now holding 263,771 shares valued at approximately $865,000 after acquiring an additional 226,467 shares. Other firms, such as Van ECK Associates Corp and Centric Wealth Management, have also entered new positions valued at around $117,000 and $128,000, respectively.
Creative Planning raised its stake by 145.0% in the third quarter, bringing its total holdings to 56,790 shares valued at approximately $137,000. Jane Street Group LLC also expanded its holdings by 130.3%, now owning 49,301 shares worth about $162,000.
Braskem, headquartered in São Paulo, Brazil, stands as a leading integrated petrochemical company and is recognized as the largest producer of thermoplastic resins in Latin America. The company operates across the entire value chain, from feedstock sourcing to polymer production and recycling. Its diverse product portfolio includes polypropylene, polyethylene, and polyvinyl chloride (PVC), which are crucial in various industries such as packaging, automotive, construction, and electronics.
Investors and analysts alike will be monitoring Braskem’s performance closely as it navigates the complexities of the petrochemical market and responds to the varied sentiments expressed by financial institutions.
