Zacks Investment Research Lowers Braskem (NYSE:BAK) to Sell

Zacks Investment Research lowered shares of Braskem (NYSE:BAK) from a buy rating to a sell rating in a research report report published on Tuesday, 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. “

A number of other equities research analysts have also recently weighed in on BAK. JPMorgan Chase & Co. raised Braskem from a neutral rating to an overweight rating and set a $14.00 price target for the company in a report on Wednesday, February 24th. HSBC reaffirmed a hold rating and set a $20.00 price target on shares of Braskem in a report on Wednesday, April 28th. Scotiabank cut Braskem from an outperform rating to a sector perform rating in a report on Friday, March 12th. Finally, TheStreet raised Braskem from a d+ rating to a c- rating in a research note on Friday, May 21st. One investment analyst has rated the stock with a sell rating, three have given a hold rating and two have assigned a buy rating to the company. Braskem currently has a consensus rating of Hold and an average price target of $19.00.

Shares of BAK stock opened at $23.52 on Tuesday. The stock has a 50 day moving average price of $19.18. Braskem has a 12 month low of $7.00 and a 12 month high of $24.11. The company has a market cap of $9.38 billion, a P/E ratio of -84.00 and a beta of 1.59.

Braskem (NYSE:BAK) last announced its quarterly earnings data on Wednesday, May 5th. The company reported $1.15 EPS for the quarter, topping the Zacks’ consensus estimate of $0.91 by $0.24. The firm had revenue of $4.15 billion during the quarter, compared to the consensus estimate of $4.31 billion. Sell-side analysts anticipate that Braskem will post 4.28 earnings per share for the current fiscal year.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Renaissance Technologies LLC acquired a new stake in shares of Braskem in the 4th quarter valued at $2,281,000. Credit Agricole S A grew its stake in shares of Braskem by 33.3% during the fourth quarter. Credit Agricole S A now owns 8,000 shares of the company’s stock worth $72,000 after purchasing an additional 2,000 shares during the period. Trexquant Investment LP acquired a new stake in shares of Braskem during the fourth quarter worth $222,000. JPMorgan Chase & Co. acquired a new stake in shares of Braskem during the fourth quarter worth $119,000. Finally, Norges Bank acquired a new stake in shares of Braskem during the fourth quarter worth $1,802,000. 0.37% of the stock is owned by institutional investors.

About Braskem

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.

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