JPM restarts BASF with 'neutral', expecting gradual recovery
** J.P.Morgan resumes coverage of BASF BASFn.DE with "neutral", as it sees a gradual recovery despite near-term uncertainty relatedto revival of China demand and lower interest rates
** Thoughmid-term supply and demand challenges affectthe industry, the brokerexpects a gradual recovery from the 2024 trough and sees market pessimism on BASF's European operations as excessive
** The company's production sites in Europe are seen as mostly cost-competitive, the broker says, adding that its growing presence in China is achieving higher margins and is likely to become a larger part of its operations
** "We believe the changes being envisaged by the CEO to improve the performance culture could have a more profound upside over time," JPM adds, referring to planned changes to the incentive system
** Out of 27 analysts that cover BASF, 14 rate the stock "strong buy" or "buy," 11 "hold" and two rate it "strong sell" or "sell" - LSEG
Reporting by Chiara Holzhaeuser
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