BASF Third Quarter in Line With Previously Released Numbers; Shares Undervalued

Narrow-moat BASF reported third-quarter EBIT of EUR 1.3 billion, down 28% versus the prior-year period, but matching the numbers disclosed on Oct. 12. Guidance for 2022 EBIT of EUR 6.8 billion-EUR 7.2 billion was unchanged although the company noted that economic activity declined more significantly than expected in the third quarter. We don’t expect to make a material change to our EUR 62 ($16) fair value estimate. At current levels, the shares look undervalued.