UBS reiterates its Buy recommendation on the stock, with a target price of E59, representing a potential upside of 35% from the current price.

' BASF's adjusted EBIT for Q4 FY 2023 is 30% below consensus, due to upstream chemicals. The buy rating is based on a recovery in long-term demand' says UBS.

UBS analysts believe that these worse-than-expected figures are more than offset by the strong free cash flow (FCF) generated by the group, estimated at around €2.2 billion last year.

The German chemicals giant said it expected sales of 68.9 billion euros for the year, well below its target range of 73 to 76 billion euros.

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