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Original-Research: BASF SE - from Parmantier & Cie. GmbH

06.10.2026 / 14:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
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Classification of Parmantier & Cie. GmbH to BASF SE

Company Name: BASF SE
ISIN: DE000BASF111

Reason for the research: Sector Study
Recommendation: Buy
from: 06.10.2026
Target price: EUR 59.00
Target price on sight of: 6 months
Last rating change: n/a
Analyst: René Parmantier

European Chemicals: The 2027 Cycle

A 76-page knowledge report and primer on the German chemicals sector

FRANKFURT AM MAIN, 6 October 2026 | Parmantier & Cie. Research announces
"European Chemicals: The 2027 Cycle", a final knowledge report and primer on
the German chemicals sector, comprising 76 content pages. The report
provides an analytical framework for institutional investors assessing
German chemical industrials within the wider European production and
competitive landscape. The report also sets out individual recommendations
and 12-month price targets for each covered company.

The central thesis is that the 2027 cycle may be shaped less by a simple
industrial rebound than by restructuring, operating leverage, capacity
rationalisation, portfolio separation, deleveraging and selective
consolidation. The analysis distinguishes temporary supply-driven earnings
support from a durable improvement in volumes, margins and cash generation.

Individual recommendations and 12-month price targets

Recommendations reproduced as published in the final report dated 6 October
2026. Price targets are in EUR.

Company Recommendation 12-month price target (EUR)
BASF Buy 59.00
Evonik Hold 20.50
LANXESS Buy (spec.) 21.00
Wacker Chemie Buy 106.00
SGL Carbon Buy (spec.) 5.40
K+S Hold 17.50
AlzChem Hold 140.00
Source: final Parmantier & Cie. report, cover recommendation table. The
report contains no Sell recommendation. "Buy (spec.)" retains the report's
speculative designation. Reference prices: XETRA closes of 1 October 2026.

German chemical industrials bring together cyclical earnings exposure and
structural questions about European production networks, energy costs,
global competition and capital allocation. Assessing that interaction
requires more than extrapolating a strong quarter or applying a uniform
valuation multiple to businesses with different competitive positions and
financing needs.

The report examines five connected themes:

* Energy and production competitiveness: relative energy and feedstock
costs, the timing of input-cost changes and the conditions under which a
temporary spread benefit could translate into sustainable operating
improvement.

* Chinese capacity and export pressure: the distinction between structural
cost advantages, excess capacity and changing export intensity, alongside
differences in product qualification, customer approvals and exposure to
import competition.

* Utilisation, operating leverage and self-help: how throughput and
fixed-cost absorption interact with restructuring programmes, working
capital, capital expenditure and free cash flow. The framework tests whether
reported earnings improvement is supported by recurring cash generation.

* Portfolio separation and balance-sheet repair: the relationship between
asset sales, spin-offs, IPOs, stranded costs and deleveraging. BASF's
Agricultural Solutions separation and IPO optionality provide a concrete
context for examining value realisation without assuming a completed listing
or predetermined proceeds.

* Selective consolidation and valuation dispersion: how acquisition
premiums, financing, integration costs and regulatory constraints affect
value creation, and why apparently low multiples may indicate either
recovery potential or a value trap.

The BASF-Evonik situation is examined as one important catalyst within this
broader framework. The report records a confirmed non-binding approach and
exploratory contacts, not an agreed or signed transaction; terms, financing
structure, synergies, timetable and completion remain uncertain. Media
reporting and hypothetical transaction routes are not presented as
company-confirmed facts.

The report is a primer and knowledge resource, not a simple sector-wide
bullish call or a promise of recovery. Its independent scenario analysis
explicitly separates company disclosures and documented corporate actions
from media reports, unconfirmed M&A scenarios and Parmantier & Cie.
assumptions, while setting out disconfirming evidence and risks including
adverse energy costs, renewed export pressure, weak cash conversion, delayed
separations and excessive acquisition leverage.

Institutional investors, portfolio managers, analysts, corporate strategists
and M&A professionals seeking the full report or a discussion of its sector
framework are invited to contact research@parmantiercie.com. Enquiries may
also address deep-dive stock and sector research and short-term idea
generation. Access and distribution are subject to applicable
investor-classification, jurisdictional, compliance and regulatory
requirements.

Source: Parmantier & Cie. Research, European Chemicals: The 2027 Cycle, 6
October 2026. Prepared exclusively from the final report; information
cut-offs and evidence labels are set out there. Page count: 76 content
pages, excluding the cover and one blank page; the supplied PDF contains 78
pages.

This press release is a marketing summary of the full research report and
does not provide a complete representation of its investment conclusions,
risks, valuation methodologies, disclosures or regulatory information. It is
not personalised investment advice, an offer or a solicitation to buy or
sell securities. Analytical assumptions, forecasts and transaction scenarios
are not confirmed outcomes or guarantees. Readers should consult the full
report, including its legal notice and conflicts disclosures. Access and
distribution are subject to applicable investor-classification,
jurisdictional, compliance and regulatory requirements. Parmantier & Cie.
Research and/or its affiliates and employees may hold positions in the
securities discussed; the full report contains the conflicts disclosures.

You can download the research here:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=735c3637f00cb33d77d3c42604f83f1f

Contact for questions:
PARMANTIER & CIE. GmbH
Hungener Str. 6
60389 Frankfurt am Main
E-Mail: info@parmantiercie.com
Web: www.parmantiercie.com

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2411198 06.10.2026 CET/CEST

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