Zacks Investment Research Downgrades Braskem (NYSE:BAK) to Hold

Braskem (NYSE:BAKGet Rating) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday, Zacks.com reports.

According to Zacks, “Braskem SA figures as the largest petrochemical operation in Latin America and among the five largest private companies in Brazil. With industrial facilities located in Alagoas, Bahia, São Paulo and Rio Grande do Sul, Braskem produces primary base petrochemicals such as ethylene, propylene, benzene, caprolactam, DMT and termoplastic resins (polypropylene, polyethylene, PVC and PET) gas and GLP. “

Separately, TheStreet raised shares of Braskem from a “c” rating to a “b” rating in a research note on Thursday, May 12th. Four analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat, Braskem presently has a consensus rating of “Hold” and an average price target of $30.50.

Shares of Braskem stock traded down $0.04 on Monday, reaching $19.34. The company had a trading volume of 115,407 shares, compared to its average volume of 354,127. The company has a debt-to-equity ratio of 4.11, a quick ratio of 0.94 and a current ratio of 1.63. The firm has a market cap of $8.74 billion, a PE ratio of 2.64, a PEG ratio of 0.50 and a beta of 1.68. The firm’s 50 day moving average price is $17.75 and its two-hundred day moving average price is $18.68. Braskem has a 52-week low of $15.09 and a 52-week high of $26.93.

Braskem (NYSE:BAKGet Rating) last announced its quarterly earnings data on Thursday, March 17th. The company reported $0.24 earnings per share for the quarter, missing analysts’ consensus estimates of $2.51 by ($2.27). Braskem had a net margin of 14.18% and a return on equity of 156.07%. The business had revenue of $5.06 billion during the quarter, compared to analyst estimates of $5.23 billion. As a group, sell-side analysts predict that Braskem will post 4.03 EPS for the current year.

A number of institutional investors have recently added to or reduced their stakes in BAK. Colony Group LLC lifted its stake in Braskem by 4.0% in the third quarter. Colony Group LLC now owns 18,226 shares of the company’s stock valued at $398,000 after buying an additional 702 shares during the last quarter. Arbor Capital Management Inc. ADV bought a new stake in Braskem in the first quarter valued at $212,000. Advisor Group Holdings Inc. lifted its stake in Braskem by 156.6% in the first quarter. Advisor Group Holdings Inc. now owns 1,740 shares of the company’s stock valued at $33,000 after buying an additional 1,062 shares during the last quarter. Wells Fargo & Company MN lifted its stake in Braskem by 311.1% in the second quarter. Wells Fargo & Company MN now owns 1,850 shares of the company’s stock valued at $44,000 after buying an additional 1,400 shares during the last quarter. Finally, Veriti Management LLC lifted its stake in Braskem by 14.1% in the first quarter. Veriti Management LLC now owns 12,527 shares of the company’s stock valued at $234,000 after buying an additional 1,549 shares during the last quarter. 0.25% of the stock is owned by hedge funds and other institutional investors.

About Braskem (Get Rating)

Braskem SA, together with its subsidiaries, produces and sells thermoplastic resins. The company operates through three segments: Brazil, United States and Europe, and Mexico. The Brazil segment produces and sells chemicals, including ethylene, polymer and chemical grade propylene, butadiene, butene-1, benzene, toluene, and xylenes products; fuels, such as automotive gasoline, liquefied petroleum gas, ethyl tertiary-butyl ether, and methyl tertiary-butyl ether; intermediates, such as cumene; aliphatics, aromatics, and hydrogenated solvents; and specialties comprising isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins.

Further Reading

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