FRANKFURT (dpa-AFX) - A buy recommendation from Baader Bank drove the recovery of Covestro shares on Wednesday morning. And BASF shares could also be worth a look after a positive comment from U.S. bank JPMorgan.

Covestro shares rose one and a half percent to 38.14 euros shortly after the start of trading. Although the market's profit expectations for the chemicals group could still fall somewhat, the shares now offer sufficient value for a buy recommendation after the price losses since the beginning of February, analyst Markus Mayer wrote in his study.

The expert raised his price target from 44.00 to 45.50 euros and upgraded the shares by several notches from "Reduce" to "Buy". He thus sees price potential of around one fifth.

The market environment for the rigid foam precursor MDI is currently improving somewhat in Asia, while manufacturers' profit margins should have reached their lows in Europe and North America. Another positive factor for Covestro is that its competitor Huntsman has temporarily shut down some of its MDI production lines in the United States and Europe.

With regard to the flexible foam precursor TDI, the situation in Europe is still difficult, but raw material and energy cost pressures have eased, Mayer continued.

The bottom line is that Covestro's prospects for the first half of the year do not remain rosy, but a recovery should begin thereafter. Then, he said, positive surprises are even possible if Huntsman keeps its MDI plants idle longer than expected and if BASF closes its TDI plant in Ludwigshafen.

At the same time, the Baader Bank analyst continues to see Covestro as a potential takeover candidate given its low valuation. The expert mentioned the Austrian group OMV as a possible prospective buyer.

BASF shares rose by around half a percent to 46.39 euros. Here, JPMorgan analyst Chetan Udeshi is optimistic, with a view to the soon upcoming business figures for the first quarter. He therefore gave the shares "Positive Catalyst Watch" status, i.e. he expects them to drive the share price.

The chemicals group is likely to beat consensus estimates for the first quarter of the year thanks to surprisingly strong earnings growth in its agricultural chemicals business, the expert believes. Udeshi left the rating for BASF at "Overweight" with a price target of 55 euros./mis/tav/nas