Bayer Shares: Has All Hope Faded Away?
The Bayer stock (BAYN.DE for XETRA, BAYRY OTC for ADR) is currently trading around €28.11 on the German exchange and $8.13 in the US, following a recent slight decline of around 1.58% on August 25 [1][2][3]. Despite this, the stock has shown a short-term positive momentum earlier in July, lying in a strong short-term rising trend on the German market [1].
Technical analysis suggests a potential increase of around 21% over the next three months, with a probable price range between €32.78 and €36.78 by November 2025 [1]. However, fundamental challenges persist, such as Bayer's recent net income losses (around -€4 billion trailing twelve months) and pressures from generic competition on some drugs [2][3].
The stock's volume and price momentum are positive short-term, indicating investor confidence and technical strength [1]. Bayer’s pipeline includes promising cancer drugs with steady pricing power, which could support future revenue growth and recovery [3]. However, generic competition to products like Xarelto will likely continue to pressure margins and revenue, slowing the recovery speed [3].
The company’s valuation metrics show a relatively low price/sales ratio (~0.62) and a moderate forward P/E (~6), suggesting the market prices in some recovery potential but also considerable risk [3]. In this tense situation for the Bayer stock and its shareholders, BÖRSE ONLINE, while acknowledging the challenges, is more optimistic about Bayer's turnaround compared to most analysts. BÖRSE ONLINE believes the turnaround can be achieved and recommends buying the stock with a price target of 40 euros [4].
The 200-day line for the Bayer stock is at 28.28 euros, and a chart of the stock's movement can be found on TradingView [5]. Despite the recent drop, the stock's movement may indicate that shareholders have not yet left the sideways phase behind [6]. If there is a further drop, the 200-day line could be tested [7].
Analysts give Bayer a "hold" rating and a potential of just 2.1 percent [8]. BÖRSE ONLINE, however, believes that the base formation of the Bayer stock, which was completed after the crash, may not be fully complete [4]. Investors should weigh these factors alongside market sentiment and Bayer’s pipeline developments when considering recovery prospects [1][2][3].
It is worth noting that BÖRSE ONLINE has a conflicting interest, as the CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has positions in Bayer's financial instruments [9].
[1] [Link to source 1] [2] [Link to source 2] [3] [Link to source 3] [4] [Link to BÖRSE ONLINE's recommendation] [5] [Link to TradingView chart] [6] [Link to source 6] [7] [Link to source 7] [8] [Link to analyst ratings] [9] [Link to disclosure of BÖRSE ONLINE's interest]
- Given the positive short-term volume and price momentum, investors may find opportunities to invest in Bayer's stock, considering the predicted potential increase of 21% within the next three months in the stock market.
- While fundamental challenges exist, such as net income losses and generic competition, BÖRSE ONLINE remains more optimistic about Bayer's turnaround, recommending buyers with a price target of 40 euros, aligning with the technical analysis suggesting a recovery for the stock.
