Bayer has problems in the agricultural sector. That is why the Crop Science division is making a multi-billion dollar amortization. This can range from 5 billion euros to 9 billion euros. The analysts at DZ Bank are assuming 7 billion euros.
As a further consequence of the current situation, one wants to save additional costs. The target is 1.5 billion euros annually from 2024. In order to conserve liquidity, the dividend should initially only be distributed at the lower end of the quota of 30 percent to 40 percent.
The analysts are becoming more cautious in their expectations. For 2020 they expect earnings per share of 6.48 euros (old: 6.61 euros). The forecast for 2021 drops from 7.29 euros to 5.97 euros. In 2022, the increase should be 6.48 euros (old: 7.86 euros).
As before, the analysts recommend buying Bayer shares. The price target was EUR 75.00. In today’s study, it sinks to 63.00 euros.
The Leverkusen company warned early on of excessive market expectations. This means that you can be a pioneer for other societies with a view to 2021.
Bayer shares are down 10.5 percent today to EUR 47.685.