BASF Opens $1 Billion Geismar MDI Plant as Jefferies Cuts to Underperform

Published on 11/12/2026 at 07:21 | Editorial boerse-global.de

BASF commissioned its ~$1 billion Geismar MDI plant, lifting site capacity to about 600,000 tons, while Jefferies cut the stock to Underperform.

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BASF has commissioned its new MDI production facility at Geismar, Louisiana, an investment of roughly USD 1 billion that lifts annual MDI capacity at the site to about 600,000 metric tons. The start-up lands alongside a fresh downgrade from Jefferies, which moved the stock from "Hold" to "Underperform" while keeping its price target at EUR 44.

Analyst Priyanka Patel sees operating earnings for 2027 coming in 5% below consensus. Her case rests on higher gas prices, a demand recovery that has yet to materialize, eroding margins and persistent overcapacity. The market shrugged: BASF shares added 0.2% on the day of the downgrade, having edged up 0.1% in the prior session.

Evonik Standoff Yields No Breakthrough

Talks between BASF and Evonik have produced no confirmed progress on a takeover. According to dpa-AFX, Evonik was still not negotiating a deal on Monday; the meeting of the two companies' chief executives and finance chiefs was an informational exchange rather than formal talks. Reuters reported that Evonik continues to reject the raised offer of EUR 24 per share, with no formal negotiations or further meetings scheduled.

Should investors sell immediately? Or is it worth buying BASF?

Chile Divestment and a Sunscreen Pact

On the portfolio front, ALTA Performance Materials agreed on November 5 to acquire BASF's Palatal business in Chile. The transaction remains subject to customary conditions, including regulatory approvals, and the business stays part of BASF until closing. BASF also signed a letter of intent with S&J International Enterprises on Monday to explore a strategic collaboration in sun protection — an agreement that, for now, covers only the assessment of a possible partnership.

Guidance Raised Two Weeks Ago

The downgrade contrasts with BASF's own improved outlook. Roughly two weeks ago the company lifted its annual guidance, projecting EBITDA before special items of EUR 7.4 billion to EUR 7.8 billion for 2026.

BASF Stock: New Analysis - 12 November

Fresh BASF information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

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