Goldman Sachs endorses consideration for purchasing BASF shares
BASF SE, the German multinational chemical company, is currently experiencing a mixed outlook following recent analyst adjustments by Goldman Sachs and Bernstein Research. Georgina Fraser, an analyst from Goldman Sachs, maintains a "Buy" recommendation for BASF, while Bernstein Research has slightly adjusted its expectations, reducing the target price from €53.00 to €51.00.
The majority shareholder and CEO of the publisher Börsenmedien AG, Mr. Bernd Förtsch, holds direct and indirect positions in BASF shares or related derivatives. However, the general consensus among analysts is that BASF shares are more of a hold or accumulate rather than a strong buy at current levels.
According to recent forecasts, BASF SE stock (BAS.DE) is seen with a low score (0.090), indicating limited upside in the short term. The anticipated trading price ranges near €45.50 with modest expected volatility around earnings. In contrast, BASF SE (ADR) trading in the US market shows a slightly more positive short-term outlook, with a "buy" candidate rating and predicted fair opening price around $13.20–$13.40, suggesting potential for short-term gains.
However, weak fundamentals and lowered profit expectations could dampen investor confidence. BASF's return on equity (ROE) is quite low (around 1.5%), indicating weak profit generation relative to shareholder equity. Furthermore, despite cutting 2025 profit targets, BASF shares have traded up slightly, reflecting some investor optimism but also caution given lowered expectations.
Recent concerns have been raised about the major project in Zhanjiang, China, where James Hooper, an analyst from Bernstein Research, fears that the integrated site could be burdened by overcapacity on the local market and rising construction costs, which will continue until 2026. These factors could significantly impair the profitability of the project.
Despite these challenges, the BASF share is considered an undervalued dividend stock, and the "Outperform" rating for BASF remains unchanged by Bernstein Research. Investors holding BASF shares can use a stop-loss order at €31.00 to protect their investments.
In summary, after adjustments by major analysts like Goldman Sachs and Bernstein Research, BASF shares are generally viewed as a hold with cautious optimism in the short term, especially in the US ADR market. There are no strong buy recommendations at present due to weak fundamentals and lowered profit expectations, but modest upside potential exists for traders closely monitoring support/resistance levels and upcoming earnings.
Financing in the form of stop-loss orders at €31.00 has been suggested for investors holding BASF shares, offering protection during potential market fluctuations. Given the mixed outlook, business strategies for those interested in investing in BASF SE might involve a more cautious approach emphasizing accumulation over aggressive buying.
