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Basf SE ADR BASFY

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BASF Raises 2021 Guidance Again; Shares Undervalued

Rob Hales, CFA Equity Analyst

Analyst Note

| Rob Hales, CFA |

Narrow-moat BASF reported third-quarter EBIT of EUR 1.9 billion, broadly in line with the company-compiled consensus, and raised EBIT guidance for 2021 to EUR 7.5 billion-EUR 8.0 billion from EUR 7.0 billion-EUR 7.5 billion on the back of continued strong momentum in upstream chemicals. We and consensus were already around that range, so shares are trading flat intraday after the report, and we are maintaining our EUR 73 ($22) fair value estimate. At current levels, shares look undervalued.

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Company Profile

Business Description

Based in Germany, BASF is the world’s largest chemical company, with products spanning the full spectrum of commodities to specialities. In addition, the company is a strong player in agricultural crop protection. Given its sheer size, BASF has a top-three market position in 70% of its businesses.

Contact
Carl-Bosch-Strasse 38
Ludwigshafen am Rhein, 67056, Germany
T +49 621600
Sector Basic Materials
Industry Chemicals
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type —
Employees 110,672

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