BASF: Jefferies upgrades to 'buy', raises price target
(CercleFinance.com) - Jefferies has upgraded BASF, the world's largest chemicals group, from "hold" to "buy," citing the stock's cyclical nature.
"As investments in medical infrastructure accelerate, new treatments proliferate, and vaccines enter clinical trials, the risk of new lockdowns should fade," the US broker wrote in a research note.
Jefferies also pointed out that BASF shares tend to do best when Germany's IFO is improving, a likely dynamic for the second half of the year and 2021 as the global economy regains its footing.
Jefferies has therefore raised its target price for the share to 66 euros, from 44 euros previously.
BASF shares were up 4% in early afternoon trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.