BASF Stock Downgraded Amid Weak Demand and Margin Pressure
BASF, the world's largest chemical producer, faces headwinds as analysts downgrade its stock and express concerns about its fundamentals. Despite recent operational successes, the company struggles with weak demand and margin pressure. However, BASF's upcoming quarterly results could provide a boost to investor confidence.
Berenberg recently downgraded BASF's stock from 'Hold' to 'Sell', citing weak demand in core markets, margin pressure, and dependence on China. Warburg Research also lowered its price target, pointing to a still difficult economic environment. These moves come despite BASF's recent operational achievements, which have failed to allay analysts' concerns about the company's fundamentals.
On the positive side, BASF has expanded its sustainable polyamide portfolio in North America and received approval for the new fungicide ZorinaTM in the US. The company's stock is currently considered strongly oversold, with an RSI of 26.0, potentially presenting a buying opportunity in the stock market.
BASF will publish its Q3 2025 financial results on 22 October 2025. Analysts expect full-year earnings per share (EPS) of around €2.53 to €2.55 and a dividend of €2.29 per share, slightly higher than the previous year. The upcoming results, if positive, could further stabilize BASF shares and investor confidence, following the recent sale of the coatings business to financial investor Carlyle.
BASF's quarterly figures on October 22 will be crucial in determining the company's ability to withstand the difficult market environment. While analysts express concerns about BASF's fundamentals, the company's recent operational successes and potential buying opportunity in the stock market offer reasons for optimism.
