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 plan to acquire a leading Swiss specialty chemical company, Ciba Holding AG, by paying $44.28 in cash for each nominal share in Ciba. The merger will extend BASF’s leading position as a preferred supplier to the plastics industry by expanding its product portfolio in the highly profitable market for plastic additives. Currently, BASF is seeking to gain advantage of the fastest growing automotive market in Asia. By 2009, the company intends to double its production capacity of automotive catalysts in Shanghai, China and triple its capacity in Chennai, India. Recently, the company announced plans to build a new engineering plastics compounding plant at its existing site in Thane, India, which is expected to come up by the second half of 2009. It is also expanding the e-coat facility in Mangalore, India. Read the full analyst report on BASFY "BASFY" Free Stock Analysis: Buy? Sell? Hold? Zacks Investment Research