DAX 40: Two German Stocks with High Growth Potential
Global Markets

DAX 40: Two German Stocks with High Growth Potential

Story Highlights

Analysts have assigned a Buy rating to these two German companies, Bayer and RWE, highlighting their potential upside of over 30% in share prices.

According to analysts, German companies Bayer AG (DE:BAYN) and RWE AG (DE:RWE) have a growth potential of more than 30% in their share prices. These stocks are part of the DAX 40 index and also have Buy ratings from analysts.

Among these stocks, Bayer is rated a Moderate Buy, projecting a potential growth rate of 41.7%. RWE, on the other hand, holds a Strong Buy rating and offers growth of 32%.

Let’s examine the details.

Bayer PLC

Bayer is a pharmaceutical company engaged in the manufacturing and marketing of products in the domains of human health and agriculture.

In May, the company reported its first-quarter earnings for 2023. The company stated that the full-year numbers for 2023 could be around the lower side of its guidance range, hit by higher inflation costs and a decline in prices for some of its products.

However, analysts hold a positive sentiment regarding the company’s prospects based on the higher sales forecast for new drugs, increased pharmaceutical sales, and an improved focus on the North American and Asia regions.

Two days ago, Christian Faitz from Kepler Capital reiterated his Buy rating on the stock, predicting a huge upside of 75% in the share price.

Among the analysts, Michael Leuchten from UBS has the highest price target of €96.0. This implies a growth of 83.15% from the current trading levels.

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Is Bayer a Good Stock to Buy?

BAYN stock has a Moderate Buy rating on TipRanks based on seven Buy and three Hold recommendations. The average price target of €74.2 signifies a 41.75% increase in the current share price.

RWE AG

RWE is a prominent energy company operating in Asia-Pacific, Europe, and the U.S. With a robust presence in the renewable energy sector, the company is committed to attaining carbon neutrality by 2040.

RWE experienced a notable year in 2022, capitalizing on the elevated energy prices as a leading German energy provider. Analysts believe there is still a gap between the company’s operations and its share price growth, which offers a significant opportunity to investors. RWE continues to be a compelling long-term investment option, supported by its robust balance sheet and anticipated strong cash flows, which will support its renewable energy portfolio.

Eight days ago, Goldman Sachs analyst Alberto Gandolfi confirmed his Buy rating on the stock suggesting an upside of 48% in the share price.

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RWE Stock Forecast

RWE stock has a Strong Buy rating, based on all 13 Buy recommendations. The average target price is €52, which is 31.8% above the current trading level.

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Conclusion

Analysts are highly bullish on these two German stocks and also project significant upside potential in their share prices. The “Buy” ratings by analysts reinforce the strong investment proposition.

Disclosure

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