BASF (BASFY) is witnessing sales and earnings growth due to better end-markets. All segments are experiencing improvements with the Oil & Gas segment depicting the strongest sales growth due to higher crude oil prices and increased natural gas production.

However, the company is susceptible to the harsh cyclicality of the chemical industry. Slowdown in the U.S. economy and rising feedstock costs are likely to limit the top-line growth of the company. Hence, we rate the stock a Hold and set a six-month target price of $53.

The company is executing its share purchase program successfully. It completed its 3 billion ($4.7 billion) share repurchase program for 2007 and 2008 ahead of schedule. A total of 33.7 million shares were repurchased at an average price of 88.91 ($138.52) per share. Recently, the company launched its new repurchase program for 3 billion ($4.7 billion), which will continue until mid-2010.

Recently, the company announced its

BASF (BASFY) is witnessing sales and earnings growth due to better end-markets. All segments are experiencing improvements with the Oil & Gas segment depicting the strongest sales growth due to higher crude oil prices and increased natural gas production.

However, the company is susceptible to the harsh cyclicality of the chemical industry. Slowdown in the U.S. economy and rising feedstock costs are likely to limit the top-line growth of the company. Hence, we rate the stock a Hold and set a six-month target price of $53.

The company is executing its share purchase program successfully. It completed its 3 billion ($4.7 billion) share repurchase program for 2007 and 2008 ahead of schedule. A total of 33.7 million shares were repurchased at an average price of 88.91 ($138.52) per share. Recently, the company launched its new repurchase program for 3 billion ($4.7 billion), which will continue until mid-2010.

Recently, the company announced its