Bayer: Berenberg lowers target price
(CercleFinance.com) - Berenberg announced on Tuesday that it had lowered its target price for Bayer shares from E28 to E22, while maintaining its 'hold' recommendation on the stock.
The analystbelieves that at least one of the following two factors will have to materialise 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 progress.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
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.
The analystbelieves that at least one of the following two factors will have to materialise 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 progress.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
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.