BASF Stock: Mixed Results Amid Strategic Adjustments

Despite a slight dip of 0.3% to €46.87 in Monday's XETRA trading, BASF's market outlook remains cautiously optimistic. Analysts maintain an average price target of €54.07 per share, suggesting significant upward potential from current trading levels. The chemical giant's operational performance has shown marked improvement, with earnings per share reaching €0.32, a substantial recovery from the previous year's -€1.78. Market experts attribute this positive sentiment to various factors, including fiscal incentives in the US and China, along with new supportive measures for Germany's chemical industry.

Financial Performance Insights

The company's 2024 fiscal year presented a mixed picture, with adjusted EBITDA reaching €7.9 billion, slightly below the targeted range of €8.0-8.6 billion. While revenue declined to €65.3 billion from €68.9 billion year-over-year, free cash flow exceeded expectations at €0.7 billion, surpassing the projected range of €0.1-0.6 billion. The anticipated dividend of €2.47 per share for 2024 further reinforces the stock's appeal to investors, despite ongoing challenges including significant write-downs and restructuring costs totaling €1.9 billion.