UBS's downgrade and lower price target make it harder for Braskem to attract buyers and can pressure the share price.
The UBS downgrade and price-target cut reduce investor support for Braskem shares. The new $1.50 target sits below the stock's trade price and can encourage further selling. Falling oil in the same report could lower Braskem's raw-material cost, but that did not prevent the analyst's negative call.
The company reported fourth-quarter results and the stock jumped, signalling stronger investor interest from that report.
The announced acquisition of Helomics sent the stock sharply higher, reflecting market approval of the deal news.
A letter of intent for a large acquisition or merger drove the stock up sharply on the deal prospect.
The company priced a $4.97 million public offering and the stock fell heavily, indicating dilution concerns for investors.
Announcing an all-stock acquisition caused the stock to fall, as markets reacted to dilution and deal uncertainty.
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