Free Issue No. 16 of 11.08.2021
Bernstein raises its target for the shares of pharmaceutical and agrochemical giant BAYER to EUR 76 (Outperform), Goldman leaves its target at EUR 76 (Buy), Warburg Research fixes its target at EUR 74 (Hold), DZ Bank sees the fair value slightly lower at still EUR 68 (Buy), Berenberg stands at EUR 60 (Buy), etc. The BAYER share price alone is dipping below the EUR 50 mark - despite beating earnings and sales forecasts. We see an absolute "bargain level" here - even more so than before; a P/E ratio of around 8x cannot be for such a DAX blue chip, even if the well-known "tormentors" (the Americans with their sick "wall of complaint") as well as the debt level are still putting pressure on the share price in the short term. With regard to the latter, the Head of Investor Relations confirms to us once again in person that the focus is on debt reduction and that a debtor rating of "A" is the declared goal. Operationally,the Group is doing really well and profits are bubbling up again! Adjusted earnings per share of EUR 6 to EUR 6.20 are expected in 2021. By 2024 BAYER expects a free cash flow of high EUR 5 bn. How the current acquisition of the US biotech company Vividion is to be valued remains to be seen; Vividion develops small-molecule active substances for various indications. Its initial focus is on oncology and immunology. CEO Werner Baumann says: "We have achieved great success in the development and launch of drugs, some of which have blockbuster potential!"Nowall that'smissingis the headline that BAYER can draw a line under all glyphosate proceedings. This will cause the stock to "explode". The Supreme Court's decision is expected by the end of 2021. We believe in BAYER and maintain our price target of EUR 97!
BAYER is listed on the XETRA in Frankfurt under the symbol BAY, the security number is 10'367'293, last price approx. EUR 47.21.