Bayer Draws Twin Price-Target Hikes as Missouri Verdict and China Nod Bolster the Bull Case
Published on 11/06/2026 at 11:11 | Editorial boerse-global.de
Two of Wall Street's biggest names sharpened their views on Bayer this week, with UBS and Goldman Sachs both lifting their price targets to 66 euros on Wednesday. UBS moved from 62 euros, while Goldman climbed from 63.50 euros; each reiterated a buy recommendation. The Swiss bank framed its upgrade around third-quarter results that came in ahead of expectations, while Goldman pointed to the growth prospects of the pharmaceutical division following the quarterly figures.
The reassessment extended beyond the two investment banks. DZ Bank raised its fair value to 64 euros from 60 euros a day earlier, keeping its "Kaufen" rating. Analyst Peter Spengler tied the revision to operational stabilization, debt reduction and progress on the US legal risks.
Guidance Raised on Both Top and Bottom Lines
At the heart of the improved sentiment is Tuesday's upgrade to full-year guidance. Bayer now expects group EBITDA before special items of 9.8 to 10.3 billion euros, up from a prior range of 9.6 to 10.1 billion euros. The company also lifted its free cash flow outlook to between minus 1.5 and minus 0.5 billion euros — still negative, but an improvement on earlier expectations.
Should investors sell immediately? Or is it worth buying Bayer?
For the third quarter of 2026, group revenue totaled 10.053 billion euros, with EBITDA before special items of 1.615 billion euros. Bayer flagged Nubeqa and Kerendia as the key growth drivers behind the performance. The pharmaceutical division's EBITDA margin before special items is projected at 25 to 27 percent.
A Courtroom Win and a Chinese Green Light
Legal developments added tailwind. On October 30, Bayer reported a victory for its Monsanto subsidiary, with a Missouri jury ruling unanimously in the company's favor. According to Bayer, it was the first Roundup trial since the US Supreme Court's decision in the Durnell case. The plaintiffs, the company said, were unable to present evidence supporting alternative grounds for their claims, and Bayer explicitly characterized the outcome as a success in the first glyphosate case following the top court's ruling.
On the pharmaceutical side, Wednesday brought a Chinese approval for Sevabertinib as a first-line treatment for adults with advanced HER2-mutated non-small cell lung cancer. Bayer said the green light rests on the ongoing Phase I/II SOHO-01 study.
Anderson Keeps the Focus on Innovation and Deleveraging
Chief executive Bill Anderson, speaking to Reuters on Tuesday, ruled out a breakup of the group. The priority, he said, lies with innovation and paying down debt — a message that dovetails with the operational narrative analysts have been rewarding.
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