Following a significant court ruling that ordered Bayer to pay approximately $2.05 billion in damages related to its Roundup weedkiller, the pharmaceutical and agrochemical giant's stock showed signs of recovery on Tuesday. Shares climbed by 4.6 percent to €23.38, securing Bayer the top position among DAX performers. This rebound partially compensated for Monday's 7 percent decline, though the stock still remains about 2.7 percent below Friday's closing price. Market experts attribute this counter-movement to bargain hunters identifying buying opportunities after the steep drop. Despite the serious defeat in the US litigation concerning the glyphosate-containing herbicide, many analysts maintain that the fundamental situation for the company remains unchanged. More critical for long-term development are potential legislative changes in individual US states and the planned appeal to the Supreme Court to resolve fundamental questions in the ongoing legal disputes.
Analyst Perspective on Legal Challenges
Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Bayer AG?
Some market observers express confidence in Bayer's prospects, noting that the company has won 17 of 25 similar cases previously. Historically, imposed compensation payments have often been reduced by up to 90 percent, with analysts projecting a significantly lower settlement amount of approximately €200 million for the current case. Particular significance is attached to the potential resolution of the legal battle by 2026, possibly before the US Supreme Court. Such an outcome could unlock considerable value for the company and trigger a sustainable price increase. While substantial risks persist, some experts believe these factors are largely already reflected in the current share price, offering attractive long-term growth potential for investors despite ongoing litigation concerns.
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