Bayer AG Stock: Shares Rally Despite Legal Challenges

Bayer AG shares demonstrated remarkable resilience on Tuesday, climbing 3.2% to €24.32 on the XETRA exchange after touching an intraday high of €24.71. The strong performance, which saw over 1.5 million shares changing hands, represents significant recovery from the 52-week low of €18.41 reached in late November 2024. However, the current price remains approximately 27.6% below October's 52-week high of €31.03. Analysts maintain a cautious outlook, setting an average price target of €24.88, barely above current levels. For the fiscal year, dividends are projected to increase marginally from €0.110 to €0.112 per share. These positive signals emerged despite the company's fourth-quarter results showing a loss of €0.34 per share, contrasting with the €1.36 profit recorded in the same period last year, while revenue declined slightly to €11.73 billion.

Financial Uncertainties Loom Large

The pharmaceutical giant continues to navigate significant headwinds that threaten its long-term outlook. Reports indicate a concerning rise in glyphosate-related lawsuits in the United States, creating unpredictable financial exposure for the company. In response, Bayer is seeking shareholder approval for potential equity issuance of approximately 35% to strengthen its financial position. This comes as the company grapples with substantial debt burden and impending patent expirations in its pharmaceutical division. Despite these challenges, technical indicators suggest an emerging upward trend in 2025. Investors await the company's first-quarter results, scheduled for release on May 13, 2025, with analysts forecasting annual earnings of €4.49 per share.