Bayer AG was one of the worst stocks in Germany for years. Now it’s one of the best.
The pharmaceutical and the chemical conglomerate rose by around 40% in 2025 and ranked to the top shares in the DAX. It has increased so quickly that the price is located shortly before the average 12-month analyst destination.
Traders bet on a possible breakthrough in Bavarian law for Roundup Weedkiller and that his experimental Asoundexian medication could be a blockbuster treatment to prevent strokes. Some analysts have announced that the worst-case scenario has already been rated, and there have been no sales reviews since September.
“The entire situation for Bayer is definitely better than last year,” said Markus Manns, a portfolio manager at Union Investment in Frankfurt. “The first successes of the turnaround are visible.”
Bill Anderson, Chief Executive Officer, has tried to rationalize the extensive organization and to take the legal and lobbying in the USA since the takeover in 2023.
Nevertheless, the Bayer shares are a fraction of what they were once after this year’s recovery. The company has already paid around $ 10 billion of $ 16 billion intended for roundup claims, and Monsanto’s takeover in 2018 is now considered a textbook case of an unfortunate blockbuster deal. Last year the share fell by around 42%, a greater loss than any other company in the DAX.
More and more investors are seeing the beginnings of a turn, especially since the Supreme Court of the USA Bavaria’s legal disputes check in June and ultimately decides in favor of the company.
There is probably a 40% probability that the Supreme Court will conduct the summary of the summary, and if this should happen, there is a probability of 75% that, according to Tom Claps, a legal dispute analyst at Gordon Haskett, ultimately on the side of Bayer.
According to Bayer spokesman, the company announced that there is a review of the Supreme Court by the end of June and adds that the company reviews all available options for dealing with the legal disputes.
James Quigley, Analyst of Goldman Sachs Group Inc. In the beginning of this month, he improved the share to a purchase recommendation, one of three analysts to do this.
If the Supreme Court rejects Bayer’s appeal, the company must of course rely on other approaches, for example the separation of its glyphosate business. According to Holly Froum, a Bloomberg Intelligence Analyst, the company could have to spend another 8 billion US dollars in order to go beyond the approximately 67,000 outstanding claims.
A Bayer spokesman refused to comment on the estimates of the amount of outstanding claims.
Bayer also has a high degree of debt, and prominent The German investor, Ingo Spich from Deka Investment, has annoyed the company’s continuous battles. In addition, the company looks like a increased competition for blockbuster-eye medicine and bloody thin Xarelto.
The stock is still cheap compared to peers and some investors are optimistic that there can be positive results from an attempt in which an experimental stroke medicine is tested. Bayer acts with about six times forward -looking results compared to the average of 15 for companies in the Stoxx 600.
The company’s pharmaceutical unit could get a thrust if the stroke medication creates good data in the late stage in later year, according to the Union Investment man. He estimates that treatment can generate up to 2 billion euros (2.3 billion US dollars) in annual sales.
“As soon as the overhang of the legal dispute has been clarified, the company may be better able to present a strategy to the shareholders to ward off the balance sheet that could enable him to invest in his pharmaceutical pipeline,” wrote Rajesh Kumar, analyst at HSBC Holdings PLC, in a note.
