Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - UBS downgraded Braskem (BRKM5:BZ) (OTC:BRKMY) from Buy to Neutral on Friday, while reducing its price target to R$10.00 from R$15.00.
The downgrade reflects a deteriorating short-term outlook for the Brazilian petrochemical company, with UBS noting that a return to mid-cycle spreads is not expected until 2028.
UBS cited persistent challenges in the industry landscape as a primary concern, with the company facing difficulties in stopping current cash consumption without potential asset sales or similar alternatives.
The investment bank now views higher import tariffs and REIQ/Presiq programs as necessary conditions for Braskem to return to cash generation, rather than merely upside risks as previously assessed.
Despite the downgrade, UBS acknowledged that Braskem could still navigate the challenging environment and leverage its leadership position in the medium to long term.
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