BASF Stock: Jefferies Downgrade Triggers Market Plunge

BASF shares tumbled on Tuesday following an unexpected downgrade from analysis firm Jefferies, sending the chemical giant to the bottom of Germany's DAX index. The rating reduction from "Buy" to "Hold" came alongside a price target cut from €52 to €47, shocking investors who had been eyeing the chemical sector's modest recovery in the first quarter.

Market Conditions Overshadow Internal Progress

Despite BASF's internal restructuring efforts, Jefferies analyst Chris Counihan cited persistent weakness in base chemicals demand as the primary concern. While the German chemical and pharmaceutical industry showed signs of life in Q1 with production increasing 6.7% and revenue rising 4.4% to €54.8 billion, industry association VCI remains cautious for the full year. The sector faces significant headwinds including high energy costs, U.S. tariff policies, and potential market flooding by Chinese products. BASF shares fell approximately 1.5% to €43.22 in early trading, even as the DAX index recently reached an all-time high near 24,000 points.

Ad

Fresh BASF information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Source StockWorld