UBS Downgrades Braskem to Sell Amid Persistent Spreads Pressure
Braskem (BAK) fell sharply by 15.2% in Wednesday trading after UBS downgraded the stock from Neutral to Sell, citing ongoing challenges related to spreads and restructuring efforts. The firm also significantly reduced its price target for Braskem's American Depositary Receipts (ADRs), cutting it from $4 to $1.50. The downgrade reflects concerns over continued pressure on profit margins due to increased Chinese petrochemical capacity, which is keeping global spreads under strain. UBS acknowledged being late in issuing the downgrade but emphasized that structural issues remain unresolved for Braskem.
Topics: analyst rating change petrochemical industry stock price movement