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MarketScreener Homepage  >  Equities  >  Xetra  >  Bayer AG    BAYN   DE000BAY0017

BAYER AG

(BAYN)
  Report
Real-time Estimate Quote. Real-time Estimate Tradegate - 10/21 03:59:59 pm
42.608 EUR   -2.32%
01:11pBAYER : Monsanto loses final appeal over French farmer's weedkiller accident
RE
08:18aBAYER AG : JP Morgan gives a Neutral rating
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05:25aBAYER AG : Morgan Stanley reiterates its Buy rating
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Bayer : Bleaker profit outlook at Bayer turns into reckoning over Monsanto

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10/01/2020 | 01:10pm EDT
FILE PHOTO: Werner Baumann, CEO of Bayer AG, arrives for the annual results news conference of the German drugmaker in Leverkusen

Bayer shares plunged after it flagged lower profit next year and warned it may have to write down the value of agriculture assets by close to 10 billion euros ($11.7 billion), rekindling a debate over the merits of the takeover of Monsanto.

Bayer, which acquired the U.S. seed maker for $63 billion in 2018, said late on Wednesday the coronavirus pandemic was a bigger drag on the agriculture business than feared, causing lower biofuel demand and negative currency effects, and competition in soy seeds was also intensifying.

The stock dropped as much as 12.7% on Thursday to a six-month low and was down 10% at 1054 GMT. That strips more than 5 billion euros off the company's market value.

The drugs, pesticides and seeds maker said it now expects 2021 sales to come in at around the 2020 levels, with 2021 core earnings per share slightly below 2020 levels, based on constant exchange rates.

"Since Monsanto was acquired, Bayer has delivered its basket of bad news every year and it is clear now that the group will not deliver the revenue growth expected at the time of this acquisition," said Jean-Jacques Le Fur, an analyst at brokerage Bryan Garnier.

That is an added headache as Bayer is already struggling to wrap up an $11 billion settlement over claims that Monsanto's Roundup weedkiller causes cancer after a judge took issue with a side arrangement on future cases that may yet be lodged.

Analysts at Barclays said the significant revision of the Crop Science unit's growth forecasts was a particularly unwelcome addition the litigation uncertainty.

"The profit warning for next year is a significant setback for Bayer and its management," said Markus Manns, a portfolio manager at German mutual fund firm Union Investment.

"Things like a breakup of the company or management change could likely come on the agenda again sooner or later," he added.

The contract of Bayer boss Werner Baumann, the driving force behind the takeover, was last month extended until 2024, in a show of support from the drugmaker's new chairman. That came even as the Roundup settlement deal, agreed in June, has yet to be finalised.

Shareholders denied Bayer's top management a largely symbolic vote of confidence at the 2019 general meeting, following court room defeats over Roundup, but Baumann and his team won the investor vote at this year's iteration.

($1 = 0.8530 euros)

(Editing by Michelle Adair)

By Patricia Weiss and Ludwig Burger


Stocks mentioned in the article
ChangeLast1st jan.
BARCLAYS PLC -1.53% 102.72 Delayed Quote.-41.93%
BAYER AG -2.57% 42.5 Delayed Quote.-41.63%
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Financials
Sales 2020 42 935 M 50 935 M 50 935 M
Net income 2020 -5 435 M -6 448 M -6 448 M
Net Debt 2020 32 434 M 38 477 M 38 477 M
P/E ratio 2020 -6,40x
Yield 2020 5,74%
Capitalization 41 753 M 49 553 M 49 532 M
EV / Sales 2020 1,73x
EV / Sales 2021 1,69x
Nbr of Employees 101 168
Free-Float 100,0%
Chart BAYER AG
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Technical analysis trends BAYER AG
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 67,30 €
Last Close Price 42,50 €
Spread / Highest target 116%
Spread / Average Target 58,4%
Spread / Lowest Target 8,24%
EPS Revisions
Managers
NameTitle
Werner Baumann Chairman-Management Board
Norbert Winkeljohann Chairman-Supervisory Board
Wolfgang U. Nickl Chief Financial Officer
Bijoy Sagar Chief Information Technology Officer
Paul Achleitner Member-Supervisory Board
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