Bayer AG target price?

Business Money
1

Anyone here have a view on the stick price of Bayer AG?

https://www.bloomberg.com/quote/BAYN:GR

Apparently the price got hammered by legal troubles at it’s Monsanto unit

Since May 2016 (when Bayer confirmed for the first time the speculations to bid for Monsanto), Bayer’s market cap declined by nearly EUR40B (~EUR30B since the first glyphosate verdict in California on 10-Aug whereby a blockbuster weed killer product under Bayer’s Monsanto was found liable to have caused cancer to a school groundskeeper. The concern was for the verdict to be used as the world’s first jury verdict in a lawsuit alleging that glyphosate causes cancer and that could open the floodgates for other cancer-related lawsuits). Company has maintained that the chemical-glyphosate is however safe for human use based on decades of scientific study and real-world usage.

It’s now trading around EUR64. I took delivery when a structured note got called. My bank has a 12-month target of EUR 125 which is +45% greater than the current Bloomberg consensus of EUR93.

Any thoughts on those targets?

2

you’re better off buying two stocks in Dow Jones (as a hedge) as money flowing big time into the US as that’s the safest place to be, as well as all the repatriation of company money on lower business tax, etc. Just don’t buy GE, ha!

3

I take the view that the Monsanto acquisition opened Pandora’s box. Bayer is a rock-solid company, but the Round Up issue adds a lot of uncertainty, so you’re taking a gamble on the issue disappearing or becoming a major legal liability.

I wouldn’t want to own Bayer stock these days. But then I’m a curmudgeon.

1 Like
4

cutting 12,000 jobs. That’s 1 out of 10. kind of huge, ya think?