Bayer (OTCPK:BAYRY) (OTCPK:BAYZF) settled +4.4% in Frankfurt trading Thursday as Goldman Sachs upgraded shares to Buy from neutral with a €33 price target, raised from €29.10 previously, saying the stock's risk/reward into H2 2025 looks positive and catalysts including upcoming litigation newsflow could support a re-rating over the medium term.
Bayer (OTCPK:BAYRY) (OTCPK:BAYZF) may have reached the bottom of the negative earnings revision cycle following a strong operational start to the year, Goldman's James Quigley said, underpinned by strong momentum in its pharmaceutical business and disciplined cost-cutting action in its crop science business.
Regarding Roundup litigation, Quigley suggested a potential 20%-25% upside to current levels if the U.S. Supreme Court accepts the Durnell case, with relatively limited downside risk if the case is not accepted.
Quigley said he foresees positive consensus revisions as the market acknowledges the reset in Bayer's (OTCPK:BAYRY) (OTCPK:BAYZF) cost base due to a new operating model and the strong underlying performance, moving EBITDA estimates 2%-8% ahead of consensus across 2027-30.
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