Is BASF SE (ETR: BAS) stock pushing Dax (INDEXDB:DAX) towards 13,000 points? – Idaho Reporter

INDEXDB: DAX

Is BASF SE (ETR: BAS) stock pushing Dax (INDEXDB:DAX) towards 13,000 points?

BASF (ETR:BAS) shares are on the move again. They are up almost 5 percent to EUR 54.23 , a high since the beginning of March, when they were in the middle of the corona virus crash. The experts from Jefferies and Pareto encouraged investors to take action – in the hope that the BASF share would play a special role in a recovery phase from the virus crisis.

Suitable for general market recovery – the Dax (INDEXDB:DAX) is now clearly above 12,000 points again – Laurence Alexander from the Jefferies analysis company said optimistically that the risk of even stricter everyday restrictions in the virus crisis is diminishing. He is encouraged by the fact that more is being invested in the medical infrastructure, the therapeutic options are increasing and vaccines are being used in clinical studies.

BASF stock is now recommended by Alexander with a price target of EUR 66.00, which has been significantly revised upwards, since there is a classic script with a cyclical rally in the first two to three quarters in times of economic recovery – with the chemical industry at the forefront.

Similarly, Pareto expert Knud Hinkel encouraged a new recommendation with “Buy”. He sees four good reasons why, despite the uncertainties and a probably disastrous Q2 financial results, it is advisable to invest in BASF now. In addition to the relatively mild recovery so far, he counted the upside potential up to his price target of EUR 65 and the valuation. In addition, stocks usually rose earlier than the general sentiment.

To date, BASF shares have lost about a fifth of their value so far, while the leading index Dax has only lost 7.5 percent, which underpins the arguments of the experts. Since the lows in March, the DAX recovery has been 50%, on the other side only 44 percent for BASF. In the wake of the Corona crisis, the shares were available at a low of EUR 37.36

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