Huntsman: A Reasonable Choice
Due to the recent market turmoil, the stock price of Huntsman (HUN) has dropped to $21.81 (as of Feb. 10, 2019). This is an attractive price compared to its historical highs. Comparisons can be found on our database: the current PE is 8.60, while the average historical PE is 18.06. Compared to some peer companies such as Cabot (NYSE:CBT), Eastman (NYSE:EMN), or Celanese (NYSE:CE) – which are currently traded at 6x to 9x EBITDA – HUN’s multiple of 5.37x EBITDA is quite favorable. In addition to that, the company’s business model is very established with relatively limited competition. Therefore, we think Huntsman's shares are now offering a good risk/reward trade-off.
BASF: Potential Benefits From The IPO Of Wintershall DEA
BASF (OTCQX:BFFAF) now trades at a reasonable price compared to its historical highs. Comparisons can be found on our database: the current PE is 9.85, while the average historical PE is 11.91. Its stock is now among the cheapest shares traded in the German stock market. Moreover, BASF’s business model is very established with relatively limited competition. The company is now aiming at listing its gas and oil business through an Initial Public Offering, which is expected to generate a huge profit in the future. Therefore, this might be a good risk-return trade-off.
Biotage: The Leader In Flash Purification
Biotage (OTC:BITGF) is a global leader in offering innovative and integrated discovery chemistry tools for a wide range of chemical processes, including synthesis, work-up, purification, evaporation, and analysis. Their strength lies in the versatile solutions, knowledge, and experience in the areas of analytical and medicinal chemistry. Thanks to this, the company has established a large network of customers, including pharmaceutical, biotech companies, and academic institutes. The company's good financial performance and potential future growth make its share an attractive buying opportunity today.
Evotec: Excellent Growth And Excellent Perspective
Evotec is one of the most promising companies that is listed in the German TEC DAX and MDAX. The company's strength lies in the discovery and development service of a new pharmaceutical drug, which is known as contract research organization (CRO). Thanks to this outstanding business model, Evotec has acquired partnerships with many large pharmaceutical companies, including Celgene, Pfizer, Bayer, Sanofi, Boehringer Ingelheim, Genentech, Roche. The company's good financial performance and potential future growth make its share an attractive buying opportunity today.
Covestro: A Stock With High Dividend Yield, High Buyback Rate At Low Price
Covestro, a former Bayer AG subsidiary, is one of the leading producers of special polymer materials. Its products are used in various sectors such as automotive, electronics, construction and home material industry. In the past recent years, the company has been delivering very strong performance and paying good dividends. However, due to the current market tumble in Germany, many public companies, including Covestro, are now struggling in the capital market. Since the company’s financial condition is very good compared to its peers, we believe that the negative public sentiment will only have a temporary effect on Covestro’s stock price.
LyondellBasell: A Safe Buy In The Current Market Tumble
While the market is tumbling, one of the best and proven strategies is to buy profitable and stable businesses. LyondellBasell (LYB) is a company with strong and reliable growth in the past, which in addition pays excellent dividends. Therefore, it is wise to ignore the current negative sentiments and buy its stock at discount.
Incyte: Q3 2018 Report Analysis
Incyte is the biopharmaceutical company that has successfully developed Jakafi®, a drug that deals with myelofibrosis and polycythemia vera. Jakafi has been the main source of revenue for Incyte over the past few years, but it is now facing a possible new competitor in the future. However, the company's diverse and growing portfolio of product candidates might be able to offset the potential revenue loss from increased competition. Overall, we think that despite the major risk regarding its lead product Jakafi, Incyte might still have some potentials to grow in the future if its developing products are able to capture the current huge market needs.
Biofrontera: Ameluz - The Key Future Value Driver
Biofrontera has just released its third-quarter earnings report with some positive signs that quite meet shareholders' expectations. However, because of higher costs incurred during the period, the improvement in the bottom line was not as impressive as the sales figures. Nevertheless, the outstanding market potential for Ameluz - the company's main product - promises better results for the next periods. Overall, we believe that Biofrontera has full potential to grow more rapidly in the future and will reach its breakeven point soon.