BASF's Green Power Pledge for European Plastics Additives Overshadowed by Jefferies Downgrade

Published on 11/12/2026 at 13:51 | Editorial boerse-global.de

Jefferies cut BASF to Underperform on gas costs and weak demand, while the chemicals giant commissioned a Louisiana MDI plant and reported 14% Q3 revenue growth.

BASFs, Green, Power, Pledge, European, Plastics, Additives, Overshadowed, Jefferies, Downgrade Illustration mit AI erstellt.

BASF has committed to running its European production of Oppanol and Glissopal entirely on renewable electricity for external customers starting in January 2027, a forward-looking sustainability move announced Tuesday that landed alongside a decidedly less welcome piece of news from the analyst community.

Jefferies cut its rating on the German chemicals giant from "Hold" to "Underperform" yesterday, keeping its price target unchanged at 44 euros — a level that implies the brokerage sees the stock developing below the broader market. The shares were up 0.3% at €54.70 today, though a separate reading of the session put the advance at 0.6%.

The downgrade rests on two pressures Jefferies flagged to clients: higher gas prices and a demand recovery that has yet to materialize. For 2027, the analysts expect operating profit to come in 5% below consensus.

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

Louisiana MDI Plant Enters Service

On the other side of the ledger, BASF formally commissioned a new MDI production facility at its integrated Verbund site in Geismar, Louisiana, yesterday. The company invested roughly $1 billion in the project, which lifts the site's annual MDI capacity to nearly 600,000 metric tons.

Evonik Standoff Persists After Weekend Talks

Efforts to acquire Evonik remain stalled. According to Reuters, the chief executives and finance chiefs of both companies met on Saturday for discussions, but Evonik — citing an informed source — maintained its rejection of BASF's offer even after that exchange, and no further meetings are scheduled.

Reuters previously reported that Evonik had turned down a BASF takeover bid of 24 euros per share. Evonik itself has stated it will not enter takeover negotiations, characterizing the weekend contact as purely informational.