Goldman's Oppenheimer: Time to buy the DAX

Dismal data out of Germany Thursday showed that the country's economy - often seen as the powerhouse of Europe - contracted in the second quarter have not put off a growing number of market participants, who see recent dips a perfect opportunity to buy.

Peter Oppenheimer, the chief global equities strategist at Goldman Sachs, is the latest to throw his weight behind the battered bourse. He told CNBC Thursday that current valuations mean it is one of the cheapest major markets around the world.

"It does look quite cheap to us strategically," he said. "We think that the German economy will recover and also we think that the global economy is going to pick up, and Germany is very levered into global growth."

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The German Dax tipped into a technical correction earlier this month with the index falling 10 percent within a two-month period. It has since recovered ground to trade at 9,242 points at midday Thursday, but this is still below an all-time high of 10,029 points at the beginning of July. The Dax is still negative for the year with a year-to-date loss of 3.2 percent, compared to last year's rise of 25 percent. Meanwhile, yields on the German 10-year sovereign bond - seen as a safe-haven - hit record lows on Thursday morning.

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Germany's fortunes are tied to Russia, especially when it comes to trade and energy, and investors have shunned the country's stocks as the geopolitical risks emanating from the Ukrainian border increased. However, a lot of that has now been priced in, according to Oppenheimer.

Read MoreGerman correction: DAX falls 10% from June

"Additionally I think that Germany has weakened because of the weak data that we have seen in the second quarter, the lower inflation numbers. Both of which we think are somewhat temporary particularly for Germany," he added. The strategist says he is also "overweight" on cyclical stocks from the financial, technology, industrial sector believing that a pickup in global growth would harbor returns in these areas.

Far from being a contrarian call, a number of market watchers have been growing increasingly bullish on the Dax while it has slipped lower over recent months. Beat Wittmann, CEO of TCMG Asset Management, told CNBC last week that he expected the stock index to rally 50 percent over the next year. Mike Amey, portfolio manager at PIMCO, believes the German economy will "start to run" again after disappointing growth data and Nick Nelson, head of global equity strategy at UBS, sees potential upside for the rest of the year.

Read MoreEuro zone growth stagnates, Germany contracts

"If we can get any alleviation in the geopolitical concern with Russia and Ukraine, I think Germany should be a good performer and actually come back in the second half," he told CNBC Tuesday.