BASF shares are plummeting: Experts expect further price declines and recommend selling

BASF shares are plummeting: Experts expect further price declines and recommend selling

According to a report by www.deraktionaer.de,

In today's trading, the stock market is in a rather poor market environment despite numerous DAX stocks, with BASF's stock being the biggest loser and having fallen by 2.5 percent. This is due to a downgrade and a significant reduction in the price target by the US analyst firm Bernstein Research.

Analyst Gunther Zechmann downgraded BASF shares from “market perform” to “underperform” and lowered the price target from 45 to 39 euros. According to Zechmann, it is not the right time to invest in BASF as there are plenty of other investment opportunities with a view to these topics, including in the chemical sector. Furthermore, BASF shares appear to be overvalued, even in the scenario of an industry recovery.

Last week, the analysis firm Jefferies raised the price target for the DAX stocks from 39 to 41 euros, but left the rating at “underperform”. Analyst Chris Counihan justified the new price target with higher than previously expected revenue from the oil and gas subsidiary Wintershall.

Based on this information, it can be assumed that BASF shares continue to face challenges and market expectations for 2024 are too high. This could lead to a delay in the industry recovery, which could have a negative impact on the market and the financial industry. Investors and investors should take this into account when making decisions and, if necessary, reconsider their investment strategies.