BASF: Berenberg downgrades share to 'neutral'
(CercleFinance.com) - Berenberg downgraded its rating on the BASF share from "buy" to "neutral" and cut its target price from 77 euros to 66 euros, citing an "electric shock" for the chemicals industry.
With the Tesla share price having reached new summits, cobalt market futures have started to suggest a meaningful pickup in prices, the German broker said.
"These events point to one unavoidable conclusion: market consensus for 2025 global electric vehicle penetration of about 12% is too low," Berenberg added, saying that the move will have a potential impact on European chemical companies such as Umicore or BASF.
Many analysts believe that Chinese battery players - with strong positions on international markets - will tend to benefit from the situation.
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.
With the Tesla share price having reached new summits, cobalt market futures have started to suggest a meaningful pickup in prices, the German broker said.
"These events point to one unavoidable conclusion: market consensus for 2025 global electric vehicle penetration of about 12% is too low," Berenberg added, saying that the move will have a potential impact on European chemical companies such as Umicore or BASF.
Many analysts believe that Chinese battery players - with strong positions on international markets - will tend to benefit from the situation.
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.