FRANKFURT (dpa-AFX) - The prospect of upward revisions to market estimates following robust quarterly results propelled Bayer shares to the top of the Dax on Tuesday. By late morning, the stock had climbed 6.3 percent to 39.43 euros, simultaneously generating improved technical signals.

Bayer reported first-quarter earnings significantly ahead of analyst expectations in both its pharmaceutical business and its CropScience agricultural division. 'CropScience results were strong,' noted Peter Spengler of DZ Bank, citing - as did Barclays analyst Charles Pitman-King - robust performance in soybean and corn seeds alongside cost-cutting measures. Spengler and JPMorgan analyst Richard Vosser now anticipate a slight uptick in market expectations, bolstered in part by easing currency headwinds.

According to the DZ Bank expert, the 'next trigger' for the stock will likely be the U.S. Supreme Court decision regarding glyphosate. Bayer is banking on a landmark ruling from the highest U.S. court that could undermine the legal basis for numerous glyphosate lawsuits. A hearing took place before the Supreme Court in late April, with a decision potentially expected by the end of June.

Furthermore, he emphasized that 2026 would be a pivotal year for CEO Bill Anderson, 'as it concludes his first strategic cycle.' Key objectives include reducing debt and glyphosate-related risks, as well as rebuilding the pharmaceutical pipeline. 'While a settlement to resolve future litigation could lower glyphosate risk, it increases debt in the short term.'

In addition to its efforts before the Supreme Court, Bayer is currently attempting to largely clear the glyphosate litigation hurdle through a multi-billion dollar class-action settlement announced in February. Plaintiffs have until early June to decide.

Regarding the stock's technical outlook, the next resistance level sits just below 41 euros at the 90-day moving average, which serves as a medium-term trend indicator. Slightly above that lies the upper bound of the consolidation range seen in recent weeks, spanning approximately 36 to 42 euros.

Since the start of the current year, the stock - which has been under severe pressure since the 2018 Monsanto acquisition and subsequent glyphosate litigation - is back in positive territory with a 6.5 percent gain. However, it remains a considerable distance from its mid-February year-to-date high of just under 50 euros.

The rally that began in November 2025 was triggered by strong clinical trial data for the anticoagulant Asundexian. This was complemented by progress in U.S. legal disputes involving the weedkiller glyphosate and the environmental chemical PCB, which has been banned for decades.

However, disillusionment set in again in mid-February, as numerous uncertainties persisted despite Bayer's announced comprehensive class-action settlement, including the pending Supreme Court ruling. Moreover, the annual figures and 2026 outlook presented in early March had failed to impress at the time./ck/mis/jha/