Bayer AG Litigation Newsflow and Performance Update

Goldman Sachs maintains a Buy rating on Bayer AG with a €55 target price, focusing on upcoming Glyphosate litigation catalysts as a path to 30-45% upside despite near-term uncertainty.

Key Takeaways

• 1.Upcoming outcomes of Glyphosate litigation, specifically the Class settlement opt-outs and the US Supreme Court ruling on 'failure to warn', will be the primary driver of investor sentiment.
• 2.Underlying business fundamentals, particularly in the Pharma division (Nubeqa and Kerendia), are strong and Goldman Sachs is 2-8% ahead of consensus EBITDA forecasts for the medium-to-long term.
• 3.The report maintains a Buy rating on Bayer with a €55 target price, seeing a positive risk/reward skew where a favorable legal settlement could drive 30-45% upside.

Table of Contents

• Key Data
• GS Forecast
• GS Factor Profile
• Ratios & Valuation
• Growth & Margins (%)
• Price Performance
• Balance Sheet (€ mn)
• Cash Flow (€ mn)
• Income Statement (€ mn)
• Forecast changes
• Upcoming catalysts
• GSe vs. consensus
• Valuation and risks
• Disclosure Appendix

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