The stock of the pharmaceutical and agrochemical group from Leverkusen crossed the 50-euro mark shortly after trading began for the first time in nearly three years. By midday, the share was trading at around 52 euros, a gain of six percent compared to the previous day. Since the start of the year, the stock has gained over 40 percent.
Analysts at Deutsche Bank see the company on a good path. The focus should now gradually shift back to fundamentals and the growth story in agriculture and pharmaceuticals, they said. A ruling by the US Supreme Court has cheered the bank’s analysts: The justices decided that US states cannot require a cancer warning label on Bayer’s Roundup packaging because the US Environmental Protection Agency (EPA) has approved Roundup and does not mandate such a label. This could undermine thousands of lawsuits.
In addition, the company’s announcement that it would bundle its US glyphosate business into a separate subsidiary called “Ruveon” was well received. Bayer justified the move by saying that Ruveon could act more nimbly on its own and better respond to the specific competitive dynamics in the US market.
Source: Tagesschau
