Bayer: Invest Securities remains 'neutral'.
(CercleFinance.com) - Invest Securities is maintaining its "neutral" rating on Bayer with a target price of 112 euros, after the group's profit warning launched following pressure on its Crop Science and OTC franchises, as well as a FX factors that are less favourable than anticipated.
The broker points out that the first point has been quantified with a "one-off" charge that is expected between 300 million euros and 400 million euros, following a storage effect in Brazil, while the impact of the other two aspects mentioned has not been quantified.
Assuming an impact of 350 million euros on the CropScience franchise, a euro-dollar parity of at $1.10 and a margin of 17% on the Consumer franchise, we reach EPS that are down -4 % at 7.55 euros (against 7.82 euros), the analyst said.
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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 broker points out that the first point has been quantified with a "one-off" charge that is expected between 300 million euros and 400 million euros, following a storage effect in Brazil, while the impact of the other two aspects mentioned has not been quantified.
Assuming an impact of 350 million euros on the CropScience franchise, a euro-dollar parity of at $1.10 and a margin of 17% on the Consumer franchise, we reach EPS that are down -4 % at 7.55 euros (against 7.82 euros), the analyst said.
Copyright (c) 2017 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.