Added to YB: 2025-08-13
Pitch date: 2025-08-10
BAK [bullish]
Braskem S.A.
-13.21%
current return
Author Info
Lasse writes about energy/offshore & shipping + LatAm value. Sign up for the newsletter.
Company Info
Braskem S.A., together with its subsidiaries, engages in the manufacture, sale, import, and export of chemicals, petrochemicals, and fuels in Brazil.
Market Cap
BRL 7.2B
Pitch Price
BRL 9.31
Price Target
13.00 (+61%)
Dividend
N/A
EV/EBITDA
21.46
P/E
-1.20
EV/Sales
0.81
Sector
Chemicals
Category
value
Braskem ($BAK): Buy the capitulation. Get paid to wait for clarity or a sale.
BAK: Polyolefin producer trading at fire-sale levels ($3.20/ADR). Mid-cycle EBITDA $1.9-2.0bn at 6x = $6.70-8.20/ADR. Every +$50/t spread adds ~$0.45-0.50bn EBITDA. Catalysts: binding environmental liability cap & potential strategic sale. Bull case: $11-13/ADR. Risks: prolonged spread weakness, higher Alagoas costs, covenant stress.
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