BASF Wins Automotive Plastics Plaudits as Tech-Led Selloff Weighs on Shares

BASF shares shed 2.9% on Friday, closing at €53.98, as a global retreat from AI and semiconductor names rippled through the German equity market. The chemicals group ranked among the weaker DAX constituents on a day when Frankfurt fell harder than other regional bourses, with Reuters attributing the pullback to waning risk appetite over AI investment concerns following the US election outcome.

Automotive Composites Take Center Stage

While the tape was unkind, company news flow centered on recognition for BASF's automotive applications. Together with Stellantis and L&L Products, BASF received the SPE Automotive Innovation Award in the Chassis/Hardware category for a composite tunnel reinforcement developed for the Jeep Grand Cherokee's 2027 model year.

A second honor went to BASF alongside Toyota and Vuteq: the trio collected the SPE Automotive Innovation Grand Award as well as the Body Exterior category prize, with the jury citing the thermoplastic truck bed of the 2026 Toyota Tacoma.

Guidance Raised on Stronger Third Quarter

The market backdrop contrasts with improving fundamentals. Roughly two weeks ago, BASF lifted its full-year earnings outlook once more, pairing the upgrade with its third-quarter release. Revenue for Q3 2026 came in at €16.4 billion, up 14% year on year, while EBITDA before special items rose 15% to €1.6 billion over the same period.

For the full year, the company now expects EBITDA before special items of €7.4 billion to €7.8 billion, raised from a prior range of €6.9 billion to €7.7 billion.

Portfolio Reshaping: Chile Exit and Nanjing Build-Out

On the deal front, BASF agreed on Friday to sell its Palatal business in Chile to ALTA Performance Materials. The transaction remains subject to customary conditions and regulatory approvals — signed but not yet completed.

On the investment side, BASF signed an agreement on Tuesday with the Nanjing Jiangbei New Area for a new electronics materials production site in Nanjing, with operations targeted to begin by the end of 2028.

Evonik Rebuffs Improved Offer

Resistance to BASF's takeover approach for Evonik persists. Handelsblatt reported Thursday that Evonik's interim chief executive, Claus Rettig, reaffirmed rejection of BASF's €24-per-share offer, which values the target at more than €11 billion. The Evonik board has also said it will not enter takeover negotiations.

Analyst Adjustment and Buyback Progress

Midweek brought a fresh broker view: according to media reports, LBBW raised its price target on BASF from €56 to €57 while keeping a "Hold" rating. On the capital returns side, BASF disclosed on November 2 that it repurchased roughly 355,000 shares between October 26 and October 30 under its buyback program.