Chemical industry shares see resurgence.
Let's ride the BASF stock rollercoaster
Buckle up, investors! BASF's stock is on quite the ride, with its ups and downs making headlines. A new analysis from DZ Bank is shedding light on where this share might be heading next.
Over the past months, BASF's stock has seen a surge, only to be followed by a dip of over five percent. This downturn wasn't unique to DZ Bank's analysis either—US bank JPMorgan jumped on the bearish sentiment, lowering its price target from 52 to 45 euros and downgrading the stock from "Neutral" to "Underweight".
Some experts warn that BASF's stock is overvalued with a moderate P/E ratio of around 14, and they're turned off by the weakening demand in Europe and the US. Rememory, not so long ago, BASF was hailed as a winner in Ukraine peace negotiations. That is, until those talks stalled, leaving some investors feeling sour, especially in March.
But not everyone's on the downbeat. There are still a few voices that believe BASF's stock has growth potential left. DZ Bank, one of these optimists, maintains its rating of the stock at a fair value of 60 euros. Analyst Peter Spengler points to the planned commissioning of the new integrated site in southern China's Zhanjiang by the end of the year as a promising factor.
Once the construction is complete, the chemical giant could rebound and boost shareholder value. Plus, the IPO of the agricultural business planned for 2027, along with the sale or integration of the Surface Solutions business units into joint ventures, should elevate the stock's value even further.
Should you jump on the BASF train or sell your tickets?
Opinions on BASF are split on the exchange. With the current uncertainty in the market, it's tough to predict the immediate future. In the short term, it might be wise to take profits if Trump's tariff announcements cause more market tumult on Wednesday. In the long run, BÖRSE ONLINE recommends buying BASF, with a price target of 65 euros.
Want to know more about investing in BASF or other stocks? Check out:- BaFin warns: This new stock offer could empty your wallet- +2200% in 3 days: This US stock is minting millionaires, but...
Remember, there's a potential conflict of interest. The publisher's majority shareholder, Mr. Bernd Förtsch, has investments in BASF that could benefit from the price action following this article.
Material sourced from dpa-AFX
Enrichment insights (Integrated sparingly to enhance article):
Current Market Environment and Financial Performance
- Stock price volatility has made the share price fluctuate significantly, reaching €42.38 on May 6, 2025, but that volatility suggests market uncertainty.
- Although BASF reported slightly lower Q1 2025 sales compared to the previous year, its EBITDA was in line with analyst expectations.
- Regulatory and trade factors play a part in BASF's performance, as the company leverages its local production capabilities to minimize tariff exposure and global trade uncertainties' impact.
Analysts' Perspectives and Outlook
- When Morgan Stanley adjusted its price target for BASF's ADRs (BASFY), it hinted at some skepticism about the stock's future gains.
- Morningstar's fair value estimate for BASF stands at €56, indicating the stock is currently undervalued by the market.
Investment Considerations
- When following a value investing strategy, the undervalued price of BASF might make it an attractive investment.
- The short-term trend points towards further stock declines in the next three months.
- Despite the weakening demand in Europe and the US, and a recent dip in BASF's stock, DZ Bank maintains a fair value of 60 euros for the chemical giant, hinting at growth potential.
- Analyst Peter Spengler of DZ Bank cites the planned commissioning of the new integrated site in southern China's Zhanjiang as a promising factor for BASF's stock.
- In the long run, BÖRSE ONLINE recommends buying BASF, with a price target of 65 euros, despite its current volatility.
- Regulatory and trade factors, such as tariff exposure and global trade uncertainties, can significantly impact BASF's performance, as the company leverages its local production capabilities to minimize their impact.
- Following a value investing strategy, investors might find the currently undervalued price of BASF an attractive opportunity, as evidenced by Morningstar's fair value estimate of €56 for the company.
