Bayer AG Stock: Plummets on Massive Q3 Loss

Bayer AG's stock experienced a dramatic plunge on Tuesday, dropping over 12% to €21.41, its lowest point in more than two decades. The sharp decline followed the announcement of a staggering €4.2 billion loss in the third quarter of 2023, primarily attributed to a €3.3 billion write-down in its agricultural division. This financial setback has forced the Leverkusen-based conglomerate to revise its 2024 operational profit forecast downward, now projecting an adjusted EBITDA between €10.0 and €10.3 billion.

Challenges Across Business Segments

The company faces headwinds in all its major sectors. Its agrochemical business is struggling with weak glyphosate sales and declining corn acreage in South America. Meanwhile, the pharmaceutical division is under pressure as sales of its blockbuster drug Xarelto plummeted by nearly 25% due to patent expirations. In response to these challenges, Bayer plans extensive cost-cutting measures and a corporate restructuring aimed at saving €2 billion annually from 2026 onward. Despite the current turmoil, analysts maintain an average target price of €31.89 for Bayer's stock, with earnings per share projected at €5.01 for the fiscal year 2024.