Braskem S.A. (NYSE:BAK) Stock Now Rated “Strong Sell” by Sell-Side Analysts

Braskem S.A. (NYSE:BAK) has been assigned an average recommendation of “Strong Sell” from the eight analysts that are presently covering the stock, MarketBeat reports. Five investment analysts have rated the stock with a sell rating and three have given a hold rating to the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $2.56.

Several research firms recently commented on BAK. JPMorgan Chase & Co. downgraded shares of Braskem from an “overweight” rating to a “neutral” rating in a research note on Tuesday, June 30th. Wall Street Zen raised shares of Braskem to a “hold” rating in a research report on Saturday, October 17th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Braskem in a research note on Thursday, October 15th. UBS Group downgraded shares of Braskem from a “neutral” rating to a “sell” rating and cut their price objective for the company from $4.00 to $1.50 in a report on Tuesday, September 15th. Finally, HSBC downgraded shares of Braskem from a “buy” rating to a “hold” rating and cut their price objective for the company from $6.50 to $1.50 in a report on Monday, September 28th.

Braskem Trading Down 35.6%

Braskem stock opened at $1.09 on Tuesday. The company has a market capitalization of $436.47 million, a price-to-earnings ratio of 0.61, a PEG ratio of 0.10 and a beta of 1.56. Braskem has a 12 month low of $0.92 and a 12 month high of $5.39. The stock’s 50 day moving average is $1.77 and its 200-day moving average is $3.07.

Braskem (NYSE:BAK) last released its quarterly earnings results on Friday, June 26th. The company reported $1.61 earnings per share (EPS) for the quarter. The business had revenue of $4.20 billion during the quarter. Braskem had a negative return on equity of 67.75% and a negative net margin of 7.28%. As a group, equities research analysts predict that Braskem will post 1.58 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Braskem

A number of hedge funds and other institutional investors have recently made changes to their positions in BAK. Brooklands Fund Management Ltd bought a new stake in shares of Braskem in the first quarter valued at approximately $2,013,000. Ramsey Quantitative Systems bought a new position in Braskem during the 2nd quarter worth $155,000. Bank of America Corp DE increased its stake in Braskem by 178,471.4% during the 1st quarter. Bank of America Corp DE now owns 50,000 shares of the company’s stock worth $183,000 after acquiring an additional 49,972 shares during the period. Engineers Gate Manager LP increased its stake in Braskem by 192.8% during the 2nd quarter. Engineers Gate Manager LP now owns 68,198 shares of the company’s stock worth $166,000 after acquiring an additional 44,905 shares during the period. Finally, Private Advisor Group LLC acquired a new position in Braskem in the 1st quarter valued at $157,000.

About Braskem

Braskem SA is a Brazil-based petrochemical company that produces basic chemicals and thermoplastic resins used in packaging, construction, automotive components, consumer goods, agriculture and other industrial applications. Its product portfolio includes polyethylene, polypropylene and polyvinyl chloride, as well as inputs such as ethylene, propylene and other petrochemical intermediates.

Founded in 2002 through the combination of several Brazilian petrochemical businesses, Braskem developed into one of Latin America’s largest petrochemical producers.