Basf SE

BAS: XETR (DEU)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€76.00	Qkrpw	Plmdfjkj

BASF Earnings: End of Destocking Should Lead to Profit Growth in 2024

Seth Goldstein

Feb 23, 2024

BASF's fourth-quarter results show the continued challenge of weak chemicals demand due to customer inventory destocking, as adjusted operating profits fell nearly 22% versus the prior-year quarter. However, during the quarter, volumes were down less than 1% year over year and segment operating profits grew in all businesses except chemicals and agricultural solutions. This shows that demand is returning, which is in line with our thesis that BASF's profits will improve in 2024. After our initial earnings review, we're maintaining our EUR 62 ($16) fair value estimate. Our narrow moat rating is also unchanged.

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