BASF: at the top of the DAX, Jefferies upgrades to buy

(CercleFinance.com) - BASF shares were one of the biggest gainers on the DAX index on the Frankfurt Stock Exchange on Friday, after analysts at Jefferies upgraded their recommendation to "buy".


Shortly before 5:00 pm, shares in the German chemicals group climbed 2.6%, while the DAX gained around 0.7% at the same time.

In a research note, the Jefferies teams said they had noted some improvement in the group's exposure to upstream chemical spreads, following the 20-year lows reached during the summer.

This dynamic, combined with improved volumes, is in line with the lower end of the range of targets BASF has set itself for this year, the research firm continues.

With a dividend yield of around 8%, Jefferies believes that the share's downside potential is now limited.

For the intermediary, the greatest challenge facing Markus Kamieth, the new CEO, will be to instill renewed confidence in the Group's business and strategy at the investor days to be held on September 26 and 27.

His target price is €43.

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