Medium term
Trade view / 15 April 2015 at 7:23 GMT

#SaxoStrats: Long BASF as Europe growth rebounds

Head of Equity Strategy / Saxo Bank
Denmark
Instrument: BAS:xetr
Price target:
Market price:
Background

Shares of BASF, the largest chemical producer in the world, have tailwind from the lower euro, the growth rebound in Europe and lower oil prices. The stock is experiencing strong momentum – rising 27% in the past year.

Analysts are very divided with 11/14/11 across buy/hold/sell.  

Management and risk description

Key risks to this trade are Q1 earnings on April 30, and any negative macro data on Europe.

Parameters

Entry: Buy at market.

Stop: EUR89.50.

Time horizon: 1 month. 

BASF weekly share price since IPO in 2013
m
 Source: Saxo Bank. Create your own charts with SaxoTrader click here to learn more.

— Edited by Oliver Morrison

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Non-independent investment research disclaimer applies. Read more
4y
Kjasnov Kjasnov
All stocks pics from SaxoBank must go 100% in last half a year before it pops on buy list. :)))
4y
Peter Garnry Peter Garnry
Well we like the momentum effect. It shows statistically alpha in our backtests so it is one of the factors driving our alpha picks lists.
4y
Teofilo Teofilo
Any news on this fall of 3,7pct. where should I place a stop loss?

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