corporations BASF and TUI initiate large-scale transformation programs
Captivating Comeback: A Closer Look at BASF and TUI's Upturn
For far too long, these German stalwarts have been labeled as underperformers. Yet the tide seems to be turning for BASF and TUI, with a potential grand reversal on the horizon. But let's tread carefully - here's the lowdown:
The Resurgent TUI Share: A Beacon of Hope?
A spark of optimism is stirring in the travel industry, and TUI seems to be right at the forefront. The company's latest quarterly earnings showed a stunning 200% increase in profits, climbing to a substantial 500 million euros. Unstoppable CEO Sebastian Ebel envisions further progress in 2024, targeting revenue and profit growth across all travel segments. This momentum marks a turning point in the TUI share's long, tumultuous descent, hinting at fresh beginnings. The share price may have already hit bottom, opening doors to a promising uptrend - and even reaching the 17 euro mark, marking a whooping 100% increase, is not out of the question by early next year. But as always, the next quarterly results and summer season will bear witness to the TUI share's true rebirth - will it be a flash in the pan or a triumphant return to erstwhile glory? For now, investors can still seize the opportunity to ride TUI's comeback wave. Keep an eye on the 200-day line, and don't hesitate to tighten your stop-loss if needed.
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Is the BASF Share's Best Yet to Come?
It's been a bumpy road for the BASF share, but as we've been reporting, a double bottom could be forming. There's hope that this formation has succeeded, as the share price is seeing a resurgence this week, even surpassing the 50-day line - a promising indication of a new upward trend.
TUI's road is a bit rockier. After overcoming the 50-day line, BASF still has a few obstacles to conquer. First, it needs to claw its way over the 200-day line, followed by the W-formation's neckline, which hovers around 48 euros. Conquering these hurdles by early next year could pave the way for a victorious turnaround, potentially propelling the share price into the 100 euro range, provided that the energy situation in Europe calms in 2024 and geopolitical conflicts subside. Even faced with such uphill battles, Warburg analyst Oliver Schwarz sees new price potential, raising the price target for BASF to a modest €52.60. The Chinese market is on the mend, and inventory levels are gradually decreasing.
All in all, betting on TUI's and BASF's turnarounds could prove to be a shrewd move. Be sure to explore more insights on Allianz and unveiled German investment secrets in our recent articles:
- Allianz: Stock Looking Golden Ahead
- The Insider's Pick: Germany's New Hidden Gems
Caveat: The publisher Börsenmedien AG's majority shareholder, Mr. Bernd Förtsch, has personal interests in the securities mentioned in the publication, including BASF. Make sure to do your due diligence before making any investment decisions!
Investing in TUI's resurgence could be a wise decision, as the financial outlook for the company is showing signs of a grand reversal, with a potential 100% increase in share price by early next year. Similarly, the BASF share's double bottom formation indicates a possible turnaround, and if the company overcomes its current obstacles, such as crossing the 200-day line and the W-formation's neckline, it could potentially reach the 100 euro range next year, especially if the energy situation in Europe improves and geopolitical conflicts subside.
