On May 19, 2023, Brazil’s state-run oil giant, Petrobras, received a nonbinding proposal for a stake in Braskem from Apollo and Abu Dhabi National Oil Company (ADNOC). However, the proposal is subject to evaluation and negotiation with Petrobras, another major shareholder. Braskem, a Brazilian petrochemical producer, confirmed that the controlling shareholder, Novonor, received the offer for the firm from U.S.-based asset manager Apollo and ADNOC. The bid for Braskem stands at 47.00 reais ($9.39) per share, with 20.00 reais to be paid in cash and 20.00 through perpetual debentures at a yearly rate of 4%, while the remaining 7.00 reais would be paid via warrants. This bid represents a 79% premium over Braskem’s closing price of 26.28 reais per share on Tuesday. However, it is a premium of more than 140% when compared to its closing on May 4, a day before local media reported on the ADNOC-Apollo bid. In a letter to Braskem, Novonor reiterated that the offer was being evaluated, and no decision had been made yet.
BAK Stock Performance and Analysis: May 19, 2023
On May 19, 2023, BAK stock opened at 9.20, down 0.25 from the previous close of 9.45. The day’s range was between 9.10 and 9.39, with a volume of 326 shares traded. The market cap of BAK is $1.7 billion.
BAK’s earnings growth last year was -102.51%, which is a cause for concern. However, there is no data available for earnings growth this year, and the next five years are projected to see a decline of 30.25%. The revenue growth last year was -4.52%, which is also a negative sign for investors.
The P/E ratio for BAK is not available, and the price/sales ratio is 0.20, which is lower than the industry average. The price/book ratio is 2.83, which is slightly higher than the industry average.
The next reporting date for BAK is August 4, 2023, and the EPS forecast for this quarter is -$0.22. The net profit margin for BAK was -0.35%.
BAK operates in the process industries sector and specializes in chemicals. The company’s corporate headquarters are located in Butanta, Sao Paulo, Brazil.
In conclusion, BAK’s stock performance on May 19, 2023, was lackluster. The negative earnings and revenue growth from the previous year are concerning for investors. However, the price/sales ratio is lower than the industry average, which could be an attractive factor for some investors.
Braskem SA Receives Positive Median Target Price Forecast from Analysts in 2023
On May 19, 2023, Braskem SA (BAK) had a median target price of 12.02, according to 10 analysts who offered 12-month price forecasts. The consensus among the 10 polled investment analysts was to buy stock in Braskem SA. Braskem SA is a Brazilian petrochemical company that specializes in the production of thermoplastic resins. Despite the current negative earnings per share of -$0.22, Braskem SA had sales of $3.8 billion in the current quarter. The positive median target price forecast by the 10 analysts suggests that they are optimistic about the company’s future. However, investors should also keep in mind that the stock market is unpredictable, and there are no guarantees that BAK stock will perform as expected. It is important to conduct thorough research and consult with a financial advisor before making any investment decisions.