Bayer and BASF can benefit from the China trend

The price of corn in China is at a five-year high. Bad weather is causing the price to rise again, and there is a major drought in some provinces. At the same time, demand is increasing. As a result, China has to import corn again. This trend is likely to intensify as demand in China is likely to remain high.

Various companies in the chemical and fertilizer sectors should benefit from this. The analysts at UBS make this clear in a recent study. This also includes Bayer.

The experts therefore confirm the buy recommendation for Bayer shares. The price target remains at EUR 110.00. The 2020e PER is 8.8. For 2021, the PER is 8.2.

BASF is also named in the study of the Swiss. The price target here is EUR 51.00, the vote remains unchanged as “neutral”. The rating is clearly above that of Bayer. A PER 2020e of 19.1 and a PER 2021e of 16.8 are calculated.

When it comes to dividend yield, BASF is ahead of the pack for 2020: 6.6 percent compared to 5.3 percent.

Bayer shares today gain 3.1 percent to 58.10 euros. At BASF there is a daily increase of 3.5 percent to 51.31 euros.


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