- DE30 is slightly down at the beginning of the week
- The economic calendar for today's session is relatively poor
- Morgan Stanley downgrades recommendation for BASF shares
General market situation:
This week's first trading session on European markets brings moderate declines in most stock market benchmarks. DE30 contracts are currently trading 0.19% lower. The economic calendar for today is modest, with only a few secondary data releases from the US scheduled for the afternoon. Investors will also hear a speech by ECB President Lagarde. Things will get much more interesting later in the week with the release of preliminary CPI data from Europe, the OPEC+ meeting.
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Most of the companies listed during Monday's trading session are currently losing. Source: xStation 5
Futures based on the German DE30 are trading nearly 0.19% lower on an intraday basis, but are nevertheless trading above the key resistance barrier set by the 16,000-point level all the time. A possible sustained breakout above these structures could open the way for further rallies towards the local session peaks of late August/early September 2023. On the other hand, the key resistance zone for possible observation is the level of 15,700 points. Source: xStation 5
News:
Morgan Stanley says BASF (BAS.DE) is in a relatively weak starting position compared to the rest of the industry. Costs in Europe are challenging for the chemical company, and this could likely have a negative impact on profitability in the short to medium term.
The company's shares are losing nearly 3.5% in today's session. Source: xStation
Bayer (BAYN.DE) shares are also performing poorly, losing nearly 1.6% at the time of writing. Berenberg lowered its target price from €60 to €36. As the analysts added, the fact that the company discontinued Oceanic-AF's study of Asundexian due to lack of efficacy means that the pillar of future earnings is chipping away.
The company's shares are trading at levels not seen since 2009. Source: xStation
SFC Energy's (F3C.DE) sales are expected to grow to 400-500 million euros by 2028, the company said in updated targets for 2028. Of that, more than 15 percent is to remain as EBITDA margin. Group CEO Mr. Peter Podesser sees further growth opportunities due to increasing consolidation in the industry, which, in addition to further expansion, should help the company achieve its medium-term goals. The company's shares are currently gaining nearly 9%.
Analyst recommendations:
* BASF (BAS.DE): Morgan Stanley downgraded its recommendation on the stock to an "underweight" rating. Target price set at €39 (previously €43).
* HelloFresh (HFG.DE): AlphaValue/Baader downgraded its recommendation on the stock to an "add" rating. Target price set at €39.
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