Governmental shift's aftermath: Identifying the prospective beneficiaries of the new administration
After the German general election, efforts are now underway to form a new government, with designated Chancellor Friedrich Merz (CDU) aiming to present a coalition by Easter. Early signs suggest a likely partnership between the Union and the SPD, offering fewer compromises than a three-party coalition. All parties agree on the necessity of economic reforms, with the focus on fostering growth, increasing innovation, and encouraging investments.
The financial implications of these reforms are significant, with the CDU currently resistant to abolishing the debt brake. However, it appears that the debt brake could be softened to accommodate the required changes. Financial experts remain divided on the extent and impact of these reforms on the German stock market.
Smaller and medium-sized companies, which face challenges due to Germany’s high energy costs and export-oriented economy, are expected to derive more growth opportunities under a business-friendly environment. These companies in energy-sensitive industries, such as steel and chemistry, could particularly benefit. Key plans for creating a more appealing business environment involve reducing energy costs, streamlining bureaucracy, and increasing investments in infrastructure.
Companies like BASF, Wacker Chemie, and Kloeckner & Co in the energy-sensitive industries might experience recovery as a consequence. Transport and consumer stocks, currently far from their record highs, could also prosper under a more favorable policy.
In light of this, BÖRSE ONLINE selected companies that have the potential to recover a significant portion of their losses under a new government. These companies were chosen on the basis of their realistic chances of surpassing their record highs or at least approaching their five-year highs, sufficient market capitalization, and solid fundamentals with catalysts suggesting a near-term price boost.
Some companies have the potential to double in value within the next twelve months, according to BÖRSE ONLINE. To discover which companies these are, readers are invited to check the featured article in the latest issue of the magazine.
Other topics covered in the same issue include a building construction conglomerate with increased order backlogs and dividends, a wind park specialist boosted by three positive reports, a technological breakthrough for a tech conglomerate in the race for the first commercial quantum computer, an innovative and undervalued wood and paper specialist experiencing growth, and conservative yet profitable paper offerings with profit opportunities of up to 23 percent until mid-June.
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- The economic reforms proposed by Chancellor Friedrich Merz's potential coalition government may positively impact certain energy-sensitive industries such as steel and chemistry, potentially boosting the value of companies like BASF, Wacker Chemie, and Kloeckner & Co.
- In the same issue of BÖRSE ONLINE, other topics discussed include a building construction conglomerate with increased order backlogs and dividends, a wind park specialist boosted by three positive reports, a technological breakthrough for a tech conglomerate in the race for the first commercial quantum computer, and an innovative and undervalued wood and paper specialist experiencing growth.
