06:41 AM EDT, 10/29/2026 (MT Newswires) -- Mwb Research noted that BASF (BAS.F) reported "broadly in line" third-quarter earnings, while flagging that persistent cash flow lag leaves "considerable" execution risk amid renewed feedstock price volatility. "BASF's Q3 results were broadly in line with our expectations, supported by temporary upstream pricing tailwinds and tangible restructuring benefits, while underlying demand remains subdued. Although management raised its FY26 earnings guidance, FCF targets remained unchanged despite lower expected capex. Nevertheless, the Q4 cash-flow recovery remains demanding," according to a Wednesday note. "With a broader demand recovery and sustainable cash generation still to materialize, we reiterate our HOLD recommendation and EUR 55.00 price target." The German chemicals group reported a 14.2% year-over-year increase in third-quarter sales to 16.36 billion euros, supporting the upgrade to full-year 2026 guidance. The company now expects EBITDA before special items to come in between 7.4 billion euros and 7.8 billion euros, against the previous target of 6.9 billion euros to 7.7 billion euros. "More importantly, cash conversion continues to lag earnings, with Q3 FCF of EUR 523m (+31% yoy) bringing 9M FCF to EUR -1.04bn (9M 2025: EUR -868m). Notably, management reiterated its FY26 FCF guidance of EUR 1.5-2.3bn despite reducing expected capex by approximately EUR 550m to EUR 2.8-2.9bn, suggesting weaker underlying operating cash generation than previously anticipated," mwb said. Analysts believe hitting that target still hinges on delivering 2.5 billion euros to 3.3 billion euros in free cash flow during the fourth quarter.

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