Bayer AG (DE:BAYN) received three ratings following the emergence of a report discussing the potential spin-off of its agricultural business. It includes two Buy and one Hold rating confirmations from analysts. The news also sent the shares higher, and they were trading up by 3.3% at the time of writing, continuing the upward streak from Friday. YTD, the stock has gained 5.5%.
Bayer is a pharmaceutical company involved in the production and promotion of products in the fields of human health and agriculture.
Today, Bernstein analyst Gunther Zechmann reiterated his Buy rating on the stock, suggesting a huge upside of more than 75%. The price target of €89 remains unaltered.
Analyst Charles Bentley from Jefferies also confirmed his Buy rating on the stock today. His price target of €68 implies a growth potential of 35% in the share price. Bentley feels the separation of businesses into pharmaceuticals and agriculture will act as a major catalyst for the share price.
On the contrary, J.P. Morgan analyst Richard Vosser took a cautious approach as compared to other analysts. He maintained his Hold rating on the stock and expects a growth of almost 10% in the share price. Vosser also shared his doubts about a potential spinoff, suggesting the company would be better served by focusing on revitalizing its pharmaceuticals division to enhance its overall value.
Vosser also cut his estimates for the upcoming second-quarter earnings report. He believes that the company could also reduce its yearly targets in 2023, mainly due to higher costs, declining margins, and the growing challenges posed by exchange rates.
Are Bayer Shares a Good Buy?
BAYN stock has a Moderate Buy rating on TipRanks, with a total of 11 recommendations, of which eight are Buys.
At an average price forecast of €73.10, analysts are predicting a growth of 46.2% in the share price.
Analysts have a mixed opinion on Bayer’s stock after the spin-off news. Overall, the stock has a Moderate Buy rating with the majority of bullish views and decent growth potential in the share price.