Bayer AG Stock: Challenges Mount Amid Strategic Moves

Bayer AG faces turbulent times on the stock market as analysts revise forecasts downward. Jefferies has reduced its price target for the chemical and pharmaceutical giant from €29 to €22, maintaining a "Hold" rating. This adjustment stems from lowered profit estimates for 2025/26, particularly in the agrochemical sector. The forecast suggests a decline in operational earnings (EBITDA), potentially leading to sustained moderate cash flow and a new peak in debt levels.

Pharmaceutical Portfolio Expansion Amidst Financial Pressures

In a bid to bolster its cardiovascular portfolio, Bayer has secured an exclusive licensing agreement with a biotech firm for the drug Aficamten in Japan. This deal, valued at up to €560 million, aims to drive long-term growth in the lucrative heart medication segment. However, despite this strategic move, Bayer's stock performance remains under pressure. The share price recently dropped to €19.98, significantly below its 52-week high of €37.94. Analysts maintain an average price target of €28.89, indicating potential upside, but ongoing legal disputes and profit strains continue to challenge the company's market position.