- Many investors see BASF's low valuation as a great opportunity to buy a quality company at a cheap price. However, there are some reasons to be skeptical about BASF's cheapness.
- With inflation high and ECB's upcoming monetary tightening, BASF's largest market - Europe - is likely to be hit hard.
- In Asia, another large market for BASF, other petrochemical producers including Russia’s Sibur and China's Sinopec have been expanding sales.
- In the Middle East, where BASF has a presence, there is also a player that can use the situation to its advantage.
- I think that even from the current price level, BASF shares still have room to move down, so I wouldn't buy BASF stock now.
For further details see:
BASF Stock Is Cheap For A Reason