Background and Current Developments
- Stock Performance: The Bayer stock has seen a significant increase in recent days. On June 5, 2025, the price was approximately 26.35 EUR, reflecting a change of about 4.36% from the previous day. Over the last six months, the stock has gained over 41%.
- Analyst Voices: A positive analyst opinion, particularly from Goldman Sachs, has triggered the price increase. Goldman Sachs upgraded its rating on Bayer stock from Neutral to Buy and raised the price target to 33.00 EUR. This upgrade is based on a favorable risk-reward ratio expected for the second half of 2025.
- Company Performance: Bayer has exhibited strong performance in recent months, particularly through effective cost management in the crop division and robust performance in the pharmaceuticals business. The company has a gross profit margin of 56% and an impressive free cash flow of 6.3 billion USD over the last twelve months.
Factors for a Possible Sustainable Recovery
- New Drugs: Bayer has recently raised new hopes in the pharmaceuticals business, leading to a positive perception among analysts and investors.
- Cost Management: Effective cost control in the crop division has contributed to improved financial performance.
- Market Expectations: Analysts believe that Bayer may have reached the bottom of its negative earnings revision cycle, indicating potential positive consensus revisions.
- Fundamental Data: Strong fundamental data, including the high gross profit margin and impressive free cash flow, support hopes for a sustainable recovery.
Overall, the current rise in the Bayer stock price could mark the beginning of a sustainable recovery, supported by positive analyst opinions and improved company performance.