Bayer AG Stock: Profit Decline Forecast Amid Market Challenges

Bayer AG anticipates further operational profit decline for 2025, with adjusted EBITDA expected to fall between €9.3-9.8 billion, a drop from 2024's €10.1 billion figure which had already decreased 13.5% from the previous year. The Leverkusen-based pharmaceutical and agricultural giant reported 2024 revenue of €46.6 billion, representing a 2.2% reduction year-over-year, though currency-adjusted figures showed a marginal 0.7% increase. For 2025, the company projects currency-adjusted sales between €45-47 billion, aligning with market expectations. Despite these challenges, Bayer recorded another annual loss in 2024, with net income at negative €2.55 billion, a slight improvement from 2023's €2.94 billion loss. These continued deficits stem primarily from additional write-downs in the troubled agricultural division. Shareholder dividends remain unchanged at eleven cents per share.

Stock Performance Shows Mixed Signals

The company's stock has experienced significant volatility, trading at €23.76 on Tuesday, down approximately 1.0% in mid-day trading before further declining to €23.61. Current price levels sit roughly 23% below the 52-week high of €31.03 recorded in October 2024, yet represent a 29% recovery from November's yearly low of €18.41. Analysts maintain a cautious outlook with an average price target of €24.13, suggesting limited upside potential. While fourth-quarter results exceeded market expectations for key performance indicators, investors remain concerned about continued weakness in the agricultural business and declining revenues from pharmaceutical product Xarelto. Analysts project earnings of €4.98 per share for 2024, with dividend forecasts slightly decreasing to €0.109 per share.