German chemical and pharmaceutical giant Bayer (BAYZF)(DE:BAYN) announced the acquisition of Blackford Analysis to strengthen its radiology portfolio. Blackford Analysis provides AI-powered (Artificial Intelligence) tools that facilitate diagnosis through medical images.
Bayer stock is trading 1% lower following the announcement. However, the stock has gained over 15% in one month.
The acquisition of Blackford’s AI technology is expected to strengthen Bayer’s radiology portfolio and solidify its competitive positioning in the global radiology market. It’s worth highlighting that Bayer’s radiology products are growing rapidly. Bayer announced that its radiology products generated €1.8 billion in sales in 2021.
Per the announcement, the global medical imaging AI market could grow at a CAGR of over 26% through 2026, providing significant growth opportunities for the companies operating in this space. Moreover, the demand for medical imaging to detect and diagnose diseases will likely remain high, supporting Bayer’s financials.
Post-acquisition, Blackford will operate as an independent organization. Bayer expects to complete the transaction later this year.
Is Bayer a Good Company to Invest In?
Bayer stock has a Moderate Buy consensus rating on TipRanks, reflecting nine Buys and five Hold recommendations. Moreover, Bayer’s price target of €73.62 implies 29.84% upside potential.
Our data shows that insiders have raised their exposure to Bayer stock. Insiders bought Bayer stock worth €1M last quarter. Overall, Bayer stock has an Outperform Smart Score of eight.
