The recently weak DAX hardly reacted to the US labor market report on Friday. The leading German index was recently up 0.65 percent at 19,201 points – roughly at the level it had already maintained before the data was published. BASF shares appear friendly in this environment, and other analysts are speaking out.
Helaba economists noted that job growth in the US was weak in October. This raises concerns about an economic slowdown, although special factors such as strikes and hurricanes may have contributed to the disappointment. Sentiment data from US industry could cause further movement as the day progresses.
On Thursday, the DAX had temporarily fallen to just under the 19,000 point mark. In this area, the index then stabilized slightly again – similar to at the beginning of October. The 50-day average line, an indicator of the medium-term trend, held, which UBS chart analysts see as a positive sign. For further upward price momentum, the DAX should now close the open price gap from the previous day and exceed the 19,250 point mark.
New voices on BASF shares
In the past few days, some experts have commented on the current situation at BASF (DER AKTIONÄR reports). Now there are new voices from Deutsche Bank and the private bank Berenberg.
Deutsche Bank has reduced its price target for BASF from 54 to 50 euros, but remains at a “hold” rating. According to analyst Virginie Boucher-Ferte, the chemical company's operating profit (Ebitda) adjusted for special effects in the third quarter was just below expectations. The annual outlook points to an improvement in the fourth quarter, although she considers this to be challenging.
The private bank Berenberg also lowered its price target for BASF from 53 to 50 euros after the quarterly figures, but is still sticking to its “Buy” rating. Despite some headwinds, analyst Sebastian Bray believes the result is not worrying. The expert expects tailwind for the Ludwigshafen-based company soon.
Investors in BASF have already had to cope with a lot in the past few months. The situation remains challenging. However, the share is also attractively valued and scores with a high dividend yield. If you are already invested, note the stop at 36.00 euros.
Note on conflicts of interest
The chairman of the board and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments or related derivatives mentioned in the publication, which may benefit from any price development resulting from the publication: BASF.
