Monsanto remains a problem for Bayer. At first the legal proceedings surrounding a weed killer were a burden, now there are operational problems. Bayer has announced that it will have to take high write-downs in the Crop Science division. The pandemic is also likely to play a role.
As a further consequence, the figures for 2021 are likely to fall short of expectations. Bayer’s current forecast is around 15 percent below the consensus. Market expectations have already fallen after the second quarter. Bayer expects sales in 2021 to match the previous year’s level. The market had predicted an increase in sales of 3 percent. Earnings per share are expected to fall slightly compared to 2020. Here observers had expected an increase of 11 percent.
The analysts at Deutsche Bank incorporate the new developments into their model. You confirm the buy recommendation for the shares of Bayer. The price target so far was EUR 82.00. In the experts’ new study, the target price for Bayer shares has dropped to EUR 64.00.
Bayer’s shares are still under pressure today. The paper gives in the morning 1.5 percent to 45.665 euros.