BASF Rating Down to Hold as Mwb Notes Normalized Risk/Reward

07:09 AM EDT, 09/02/2026 (MT Newswires) -- Mwb Research lowered its rating for BASF (BAS.F) to hold from buy, noting that the German chemicals company's risk/reward profile "normalized" after its recent share price recovery. "Since our upgrade to BUY after the Q2 preliminary results, BASF's shares are approaching our EUR 55.00 fair value, closing the valuation gap that underpinned our positive stance. At the same time, the supply-related conditions that supported upstream pricing in Q2 are beginning to normalize, particularly in Asia, while precautionary purchasing has faded as customers have adjusted to the prevailing geopolitical uncertainty. As a result, we see less scope for further significant positive earnings revisions from the factors that drove the recent re-rating, with further upside increasingly dependent on a more sustained underlying volume recovery against a still uncertain macro backdrop," analysts said Wednesday. The research firm added that near-term cash conversion is still a "weak spot" despite anticipated second-half gains, while the company's 1 billion-euro share buyback and planned deleveraging are expected to offer support. "Structural self-help remains a clear support, with cost savings, CoreShift, Ludwigshafen restructuring and lower capital intensity improving earnings resilience, but we see these measures as underpinning the current earnings base rather than driving another re-rating," the note said. The price target was maintained at 55 euros.