BASF May Have to Delay 2015 EPS Goal by at Least 1 Yr: Berenberg
2014-09-16 06:36:22.401 GMT
By Chiara Remondini
Sept. 16 (Bloomberg) -- BASF may have to postpone 2015 EPS
target of EU7.5 given FX headwinds, pricing pressure, startup
costs in upstream chemicals, lower volume growth, Berenberg says
in note.
* Berenberg (hold, PT EU75 vs EU77) says concerns about ROCE,
potential 2015 EPS target cut weighed on shrs in recent
months
* Notes weakening oil price, increasing competition in
upstream chemicals, “volatile performance” of downstream
chemicals
* Says BASF should consider strategic options for non-core
businesses in downstream chemicals to improve portfolio
resilience
* Says co. can achieve ~EU2.45b in cash from divestments,
which may be used for bolt-on acquisitions or share
buybacks
* Sees shrs as range-bound without portfolio pruning or
buyback
* NOTE: Shrs -0.6% YTD vs SX4P +0.9%
* NOTE Aug. 28: BASF may reset 2015, 2020 targets after
Gazprom asset swap: UBS
* NOTE June 19: BASF said key 2015/2020 financial targets
“ambitious;” saw 2015 sales of ~EU80b, Ebitda of ~EU14b,
EPS of ~EU7.50; 2020 sales of ~EU110b, Ebitda of ~EU22b
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To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Jurjen van de Pol
2014-09-16 06:36:22.401 GMT
By Chiara Remondini
Sept. 16 (Bloomberg) -- BASF may have to postpone 2015 EPS
target of EU7.5 given FX headwinds, pricing pressure, startup
costs in upstream chemicals, lower volume growth, Berenberg says
in note.
* Berenberg (hold, PT EU75 vs EU77) says concerns about ROCE,
potential 2015 EPS target cut weighed on shrs in recent
months
* Notes weakening oil price, increasing competition in
upstream chemicals, “volatile performance” of downstream
chemicals
* Says BASF should consider strategic options for non-core
businesses in downstream chemicals to improve portfolio
resilience
* Says co. can achieve ~EU2.45b in cash from divestments,
which may be used for bolt-on acquisitions or share
buybacks
* Sees shrs as range-bound without portfolio pruning or
buyback
* NOTE: Shrs -0.6% YTD vs SX4P +0.9%
* NOTE Aug. 28: BASF may reset 2015, 2020 targets after
Gazprom asset swap: UBS
* NOTE June 19: BASF said key 2015/2020 financial targets
“ambitious;” saw 2015 sales of ~EU80b, Ebitda of ~EU14b,
EPS of ~EU7.50; 2020 sales of ~EU110b, Ebitda of ~EU22b
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Jurjen van de Pol