Andreas Heine, an analyst from Stifel Nicolaus, maintained the Buy rating on BASF SE (0BFA – Research Report). The associated price target was raised to €58.00.
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Andreas Heine has given his Buy rating due to a combination of factors that indicate a positive outlook for BASF SE. The company is well-positioned to capture market share in Europe, having achieved a 6% volume growth in its core businesses, significantly outpacing the market’s overall growth. This strong performance is expected to continue, supported by Germany’s infrastructure program, which could boost demand for chemicals, a core area for BASF.
Additionally, BASF’s strategic initiatives in China, particularly the rapid ramp-up of the new Verbund site in Zhanjiang, are expected to enhance its competitive position despite current low margins. The company’s focus on innovative products, such as the new patented form of glufosinate ammonium, positions it well against generic competition. Furthermore, BASF’s prudent approach to acquisitions, aimed at enhancing value through cost synergies, aligns with its long-term strategic goals, providing further confidence in its growth prospects.
Heine covers the Basic Materials sector, focusing on stocks such as Wacker Chemie AG, EMS-CHEMIE HOLDING AG, and Clariant AG. According to TipRanks, Heine has an average return of 4.2% and a 55.06% success rate on recommended stocks.
In another report released on March 7, Deutsche Bank also maintained a Buy rating on the stock with a €60.00 price target.