Braskem Dips Pre-Market After ‘Soft’ 4Q: Street Wrap

Published 19 March 2024, 08:14:42 [BFW]
By Leda Alvim

(Bloomberg) -- Braskem ADRs dip 2.8% during pre-market trading in New York Tuesday after the Brazilian petrochemical company reported “soft” results for the fourth quarter.

  • Shares trade for $8.35 as of 8:12 a.m. in New York


  • Company reported a recovery on its figures despite a challenging environment in the petrochemicals sector, writes analyst Gabriel Barra
  • Fundamentals will “stay in the background” while M&A news flows “rules the stock dynamic”
    • Local newspaper Estado reported that Braskem and Novonor will meet next week
    • “We believe that the M&A could be misleading for the minority shareholder given grey zones on the tag along right and final design of the control of the BAK,” he adds

XP Investimentos

  • “Weak” results as expected, with a gradual recovery, writes analyst Vladimir Pinto
  • “As 4Q23 continued to be a difficult period for the petrochemical sector, we consider it positive to confirm the slight improvement in some price levels and spreads, at the same time that we see Braskem exploring some of the competitive advantages of its assets,” he adds
  • “Too early” to call it a structural turnaround for the sector in 2024

Lucror Analytics 

  • Braskem reported “soft” results due to a weak global scenario and operating pressure that is still persisting, writes analyst Filipe Botelho
  • Notes that there was a gradual QoQ improvement and “significant” YoY strengthening given the weak comparison in the 4Q22
  • Highlights that most of the recovery took place at Braskem Idesa, where PE spreads jumped 10% QoQ given lower ethane prices
  • Says buy the Braskem curve, with a preference for bonds due in 2031