BASF Balances Portfolio Surgery Against a Wary Broker View

BASF has spent the first week of November reshaping its portfolio on several fronts at once — breaking ground on a billion-dollar US production asset, agreeing to offload its mining chemicals unit, and committing to green power for two of its specialty product lines. The market, however, is not uniformly impressed.

Jefferies Turns Negative

Jefferies cut BASF to "Underperform" from "Hold" on Wednesday, keeping its price target at EUR 44. Analyst Priyanka Patel pointed to shrinking margins, persistent overcapacity, elevated gas prices and a demand recovery that has yet to materialise. The broker sees the supply glut lasting through 2027, and expects spreads to average roughly 15% below 2026 levels next year. For 2027, Jefferies projects an operating result 5% below consensus.

Berenberg, by contrast, reaffirmed its "Hold" rating and EUR 51.50 target on Tuesday. The firm called the near-term business trend solid but questioned whether the strong profitability in upstream chemicals can be sustained into 2027.

A $1 Billion Bet on Louisiana

At the Geismar integrated site in Louisiana, BASF formally commissioned a new MDI plant on Wednesday. The total investment comes to around USD 1 billion, lifting the site's annual production capacity to roughly 600,000 tonnes.

Mining Unit Heads to SNF

On Thursday, BASF signed an agreement to sell its global mining business to SNF. The deal covers the Cork production site and about 140 employees. Closing is expected in 2027, subject to regulatory approvals and other customary conditions. No financial terms were disclosed.

Renewable Power for Polyisobutene

Separately, BASF said it will manufacture suitable polyisobutene products for external customers in Europe entirely with electricity from renewable sources starting January 2027. The switch, announced Tuesday, applies to the Oppanol B and Glissopal product ranges. Product specifications and article numbers will remain unchanged.

Buyback Keeps Rolling

BASF repurchased roughly 352,000 of its own shares between 2 and 6 November, the company said on 9 November. Since the programme began, cumulative purchases have reached around 7.95 million shares.