- BASF is trading relatively close to a 5-year low despite evidence of the pandemic-induced recession already easing and multiple self-improvement initiatives underway.
- BASF has made meaningful investments into areas like agriculture, EV batteries, personal care, and functional nutrition that should drive better than GDP growth.
- Long-term revenue growth of around 100bp over global GDP growth and modest half-point improvement in FCF margins can drive a fair value 10% to 15% above today's price.
For further details see:
BASF Not Getting Much Credit For An Upcoming Cyclical Recovery, Nor Its Self-Improvement Initiatives