Bayer shares temporarily gained 1.55 percent in XETRA trading to EUR 54.39. Deutsche Bank Research has raised the price target for Bayer from EUR 75 to EUR 79 and left the rating at “Buy”. Analyst Falko Friedrichs from Deutsche Bank considers the paper to be significantly undervalued, so the opportunity to get started is correspondingly attractive. For example, the stocks of the pharmaceutical competitors are currently valued more than twice as high as Bayer in terms of the operating profit expected for 2023.
The analyst considers this unjustified, especially since Bayer is making good progress in all three divisions in the operational business. The Leverkusen have also made provisions for possible costs from legal disputes in the coming years. Finally, Friedrichs pointed out that Bayer boss Werner Baumann had made share purchases of more than one and a half million euros at the beginning of August. This is usually taken as a sign of confidence in one’s own business development.
With the current price plus, the shares are now moving upwards from their low marked last Thursday since the beginning of March. A success in the dispute with BASF had already given a boost on Friday. Contrary to previously rampant fears, Bayer will not have to pay any damages to the Ludwigshafen-based chemical group BASF in connection with the sale of the seed business.
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