Berenberg announced on Tuesday that it had lowered its price target for Bayer from €28 to €22, while maintaining its 'hold' recommendation on the stock.

In the analyst's view, at least one of the following two factors must materialize for the German chemical and pharmaceutical group's share price to return to a sustainable upward trajectory.

These are (1) an upward turnaround in the negative cycle that has characterized the company's earnings momentum for many years, or (2) a "decisive" victory in the glyphosate case.

In the absence of the latter, an out-of-court settlement on acceptable financial terms of the numerous lawsuits facing the group would be a satisfactory solution, he explains.

While Berenberg believes that neither of these scenarios seems likely in the immediate future, it does hope that a possible decision by the US Supreme Court will perhaps enable the case to move forward.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.