FRANKFURT (dpa-AFX) - A positive study helped BASF shares jump to the top of the DAX on Wednesday. US bank Citigroup resumed its rating of the chemical company with a "buy" and a price target of €52. The stock rose 2.5 percent to €42.63 in the morning, recovering from the previous day's interim low. The €41.60 mark is an important support level that has held for several months.
Citigroup analyst Sebastian Satz pointed to the higher-than-expected valuation of the Coatings division, which BASF will now sell to financial investor Carlyle. In this respect, he wrote that he was surprised by the lack of a positive share price reaction on Friday afternoon.
The prospect of a return to demand growth in the coming year, a likely share buyback after the Coatings deal is completed, and possible payments from the German investment insurance are likely to support the share price.
However, he does not expect the third-quarter figures due on October 29 to drive the share price. A further reduction in consensus expectations for operating profit in 2026 should lower the earnings risk, he wrote./ck/mne/jha/
