BASF under PRESSURE! BUY RECOMMENDATIONS for BioNTech and WashTec shares!

WashTec: Analyst forecasts too conservative?

Market leadership, increased efficiency, dividends, and share buybacks – all good reasons to buy WashTec shares. Analysts at M.M. Warburg share this view. In their latest research on the world's leading provider of professional vehicle washing solutions, the experts come to a "Buy" recommendation. They see the fair value of WashTec shares at EUR 54. The shares are currently trading at just over EUR 48. It should be noted that the analysts' estimates are conservative. There is therefore potential for an upward revision of the price target.

After a strong third quarter, WashTec is well on its way to meeting analysts' sales expectations for the full year 2025. Management made a positive impression at the virtual capital markets day. The focus on cost-cutting measures and the European chemicals business is leading to rising margins. Accordingly, the Company is on track to achieve its EBIT margin target of 12% to 14% by 2027. In their estimates, analysts are still sticking to the lower end of the guidance. However, they already see the potential for their expectations to be exceeded.

The assessments of WashTec's chemical business are interesting. This area complements the Company's traditional car wash business. WashTec plans to sell more and more washing and care products to its customers and thus generate recurring revenues. The Company currently supplies around 30% of its customers with these products; however, this share could double in the coming years. Analysts believe that this alone could increase WashTec's consolidated revenue by EUR 30 to 45 million per year. At the same time, the European chemicals business is WashTec's most profitable product line. This development is in line with the management's goals of transforming WashTec from a pure plant manufacturer to a solution provider with recurring revenues. This was described in an interview with Lyndsay Malchuk from the IIF.

Overall, Warburg analysts expect WashTec to increase its revenue from EUR 499 million in 2025 to EUR 556 million in 2027. During this period, EBITDA is expected to climb from EUR 66 million to EUR 83 million and net profit from EUR 34 million to EUR 46 million. Accordingly, the dividend should also be increased in the coming years.

BioNTech: A groundbreaking year

BioNTech shares have made a comeback since mid-December 2025 with a jump in price. However, the Mainz-based biotech leader is still some way off a clear upward trend like that seen at WashTec. Berenberg recently confirmed its "Buy" recommendation for BioNTech shares. In a sector study, analysts continue to describe the environment as difficult. The critical US market is likely to remain heavily influenced by the US government. Weakness in China and the generally difficult economic development are also likely to continue to weigh on industry in 2026. However, the valuations of many companies in the sector are now attractive again. According to Berenberg, BioNTech shares could reach a price of USD 155.

Operationally, BioNTech has already had positive news in the early part of this year. The US Food and Drug Administration (FDA) has granted fast-track status to the mRNA cancer immunotherapy candidate BNT113. This enables accelerated regulatory review. The approval facilitation relates to the first-line treatment of patients with inoperable recurrent or metastatic squamous cell carcinoma of the head and neck.

2026 is likely to be an exciting year for BioNTech. Six new Phase 3 studies are scheduled to start in the current year. By the end of the year, the Company aims to have a total of 15 active ingredients in Phase 3. Seven important study results are expected in 2026.

BASF: No reason for optimism

BASF published preliminary figures for the 2025 financial year at the end of last week. Adjusted for the discontinued coatings business, revenue fell from EUR 61.4 billion to EUR 59.7 billion. EBITDA before special items was EUR 6.6 billion, slightly below the Company's own forecast and average analyst expectations. BASF cited lower margins and currency effects as the reasons for the shortfall. The development of free cash flow was positive. Due to lower investments, it was significantly above market expectations and the Company's own forecast at EUR 1.3 billion. Operationally, the chemical company continues to suffer from low margins. EBIT totaled EUR 1.6 billion (2024: EUR 1.8 billion) and was impacted by higher restructuring costs and other negative special items, among other factors. Only thanks to higher earnings contributions from its Wintershall Dea investment did BASF achieve a net profit of EUR 1.6 billion in 2025 (2024: EUR 1.3 billion).

Analysts reacted cautiously to the figures overall. JPMorgan is particularly pessimistic. They see the fair value of BASF shares at EUR 40 and rate them as "Underweight." After a weak fourth quarter in 2025, analysts expect estimates for 2026 to fall significantly, which could, in turn, increase pressure on the share price. "Buy" recommendations following the figures came only from Warburg and Bernstein. Both have a price target of EUR 53. BASF shares are currently trading at around EUR 46.

There is currently no compelling reason to buy BASF shares. The industry's development appears too uncertain, and the chemical company has repeatedly delivered negative surprises in the past. On the other hand, there is much to be said for buying WashTec shares. Investors gain exposure to a solid global market leader in its segment. The expansion of recurring revenues is exciting. It brings predictability and higher margins. Analyst estimates appear to have room for improvement, and then there are the rising dividends and share buybacks. BioNTech is facing a groundbreaking year. As is usual with research-based biotech companies, the share price performance will depend heavily on the research results. The high cash reserves provide downside protection for BioNTech shares.