Will the DAX resume uninterrupted in the new year and potentially impact the share prices of BASF and MTU?
Is the DAX primed for a robust start on New Year's Day, or will celebrations linger into the trading session? The focus is also on BASF and MTU with fresh analyst assessments.
While the DAX kicked off the new year with a modest gain of 0.56%, surpassing the 20,000 point mark, it fell short of a strong opening. With many investors still enjoying their vacations, the market may expect additional activity in the coming week.
For 2024, the DAX proved to be a lucrative investment, yielding a substantial 19% gain. However, China presents some early setbacks in the new year, acknowledges market observer Thomas Altmann from asset manager QC Partners, as lackluster economic data paves the way for disappointment. Although China's economy continues to grapple with numerous issues, the MDAX of medium-sized German stocks rose by 0.64% to 25,752.48 points, and the Eurozone leading index EuroStoxx advanced by 0.3%.
Transitional Period for BASF on the Horizon?
Private bank Berenberg has maintained its "Buy" rating for BASF with a price target of 50 euros. Analyst Sebastian Bray predicts 2025 will be a transitional year for the chemical company. Persistently high energy and gas costs are expected to present challenges. However, there is potential for better-than-anticipated short-term results and political tailwinds in Germany, China, and the USA.
BASF (WKN: BASF11)
Jefferies Maintains Positive Outlook on MTU Stock
Analyst firm Jefferies has persisted in its "Buy" rating for MTU. Chloe Lemarie, an analyst at the firm, commended the strong dynamics in the engine segment during December 2024, as the value of engines delivered by MTU Aero Engines rose nearly 20% year-over-year. MTU Aero Engines had a remarkable year in 2024, with shares soaring over 65%.
Content sourced from dpa-AFX
Additional Reads:- Up to 400% price potential: These 3 hot stocks are recommended by BÖRSE ONLINE for 2025- Rising dividend, little volatility: The 3 safest stocks in the world
In-Depth Analysis:
Here's a summary of analyst predictions and actual performance for the DAX index, BASF, and MTU Aero Engines for the first quarter of 2025:
DAX Index
- Earnings: Despite a 8% year-over-year decline, DAX Q1 earnings surpassed consensus estimates by 5%. Excluding the automotive sector, earnings actually increased by 4%[2].
- Sector Performance: The automotive sector was the major contributor to the decline, while substantial gains were observed in energy, technology, and industrial sectors[2].
- Outlook: Despite analyst expectations improving for DAX earnings growth in 2025, estimates have been revised downward compared to the STOXX 600's[2]. The automotive sector's performance will likely continue to drag on overall earnings, but growth outside the automotive sector is expected to pick up in the second half of the year[2].
- Market Sentiment: Technical signals for DAX-linked ETFs indicate mixed opinions; short-term indicators signal caution, while long-term averages remain optimistic[4].
BASF
Although no specific Q1 2025 forecast for BASF's performance is provided, the chemical sector is recognized as a high performer within the DAX, with quarter-on-quarter earnings showing particular strength, outperforming the DAX average[2][5].
MTU Aero Engines
Similarly, no explicit Q1 2025 forecast for MTU Aero Engines appears in the available sources. However, MTU is part of the industrial sector, which showed strong earnings growth within the DAX, excluding the automotive drag[2]. As a result, MTU likely benefited from the broader industrial sector's outperformance, but specific numbers or forecasts remain unavailable.
Summary Table
| Entity | Q1 2025 Analyst Prediction/Performance Summary ||----------------|--------------------------------------------------------------|| DAX | Earnings -8% YoY, but beat estimates; ex-autos +4% YoY[2] || BASF | Not directly reported, but chemical sector strong[2][5] || MTU | Not directly reported, but industrial sector strong[2] |
Inference: Analysts report that DAX Q1 earnings fell slightly year-over-year but exceeded expectations, with substantial strength in chemicals and industrials, which would likely benefit BASF and MTU. However, no specific forecasts for BASF or MTU are provided in the available sources, with the automotive sector being the major drag.
- Despite the modest DAX gain on the first trading day of 2025, analysts anticipate increased activity in the market as investors return from their vacations.
- For 2025, analysts at Berenberg predict that BASF, the chemical company, will face challenges due to high energy and gas costs, but also expect better-than-anticipated short-term results and political tailwinds in key markets like Germany, China, and the USA.
