The Bayer stock experienced a significant appreciation on Thursday, June 5, 2025, after Goldman Sachs upgraded the rating from ‘Neutral’ to ‘Buy’ and raised the price target from 29.10 euros to 33 euros. This recommendation led to strong demand for the stock: shares rose by up to five percent, approaching their yearly high of about 26.94 euros, with a price of around 26.62 euros. Temporarily, Bayer stock even reached the top position in the DAX index.
Background of the Buy Recommendation
Goldman Sachs justifies the upgrade primarily with the favorable risk-reward ratio for the second half of 2025. Analysts see the company as undervalued and point to impressive momentum – within the last six months, the stock has increased by over 41%. Particularly highlighted are:
- Strong Start to the Year: Effective cost management in the crop division (agrochemicals) and robust performance in the pharmaceutical business.
- Earnings Revision Cycle: It is suspected that Bayer has reached the low point of its negative earnings revision cycle. This could trigger positive consensus revisions.
- Fundamentals: The company continues to show strong fundamentals – a gross profit margin of 56% and a free cash flow of about 6.3 billion US dollars in the last twelve months.
- Lawsuits: Despite unresolved glyphosate lawsuits, Goldman Sachs sees more opportunities than risks for the second half of the year.
Impact on Private Investors and Retail Investors
The current development is particularly relevant for private investors and retail investors:
- Recognizing Market Movements: The upgrade by a major market player like Goldman Sachs signals confidence in the company and can trigger further purchases.
- Utilizing Momentum: The stock has been showing strong momentum for months already. Investors have potential further upside until the new price target.
- Risk Assessment: Despite positive signals, uncertainties remain – especially regarding ongoing lawsuits (glyphosate) and developments in the pharmaceutical business (Phase III Asundexian).
- Chart Analysis: The new price target would mean the highest level since early 2024 and could confirm a price support in the chart.
Summary
The buy recommendation from Goldman Sachs has led to a noticeable revival of Bayer stock. For private investors, this possibly presents an opportunity to participate in an upward market movement – although existing risks should also be taken into account. The company’s fundamentals are solid; however, whether the positive momentum continues also depends on the further course of ongoing trials.