The share price of Bayer has recovered this year and is now one of the top performers in the German DAX Index. The share price has increased to EUR26 this year, a 45% increase from the lowest point of 2018. The price is still 75% lower than its highest point, reached in 2025.
What is driving the Bayer stock price?
The stock of Bayer has recently risen after it published positive results in the last month. The company’s results were much better than anticipated, thanks to its kidney and cancer businesses, which offset the large drop in sales of agricultural products.
Data showed its earnings adjusted to EUR4,09 billion for the first quarter. This was still a significant drop from the previous year’s earnings, but it exceeded estimates of EUR3.8bn.
Bayer saw its sales fall slightly last quarter to EUR13.7 Billion, while the crops division fell by 4.1% to EUR7.9 Billion. Farmers reduced their expenditure as commodities prices dropped.
Bayer’s Pharmaceutical segment increased by 4.4%, to EUR4.35bn, while its Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA), grew over 11%, to EUR1bn.
Bayer Consumer Health’s revenues also increased by 4.7% in the last quarter, to EUR1.4 billion. Its EBITDA rose by 3.7% and reached EUR322 millions.
Stocks also rose as it continued to cut costs and confirm its future guidance. The company ended the third quarter with 90,880 workers, a 7.4% decrease from last year’s same-period. The decrease in employee expenses helped reduce the company’s total costs by 0.4%, to EUR 3.02 billion.
The company has cut over 11,000 workers since it began its turnaround.
The stock price of Bayer has also increased as the company prioritized its debts, which were mostly a result of its Monsanto purchase. In order to implement this strategy, Bayer has stopped making major acquisitions in this year. The company ended its last quarter in debt totaling over EUR38 billion.
Challenges remain
Analysts believe that while the share price of Bayer has recovered, it still faces many challenges. Its crop science division is expected to be flat this year due to the fall in agricultural commodities.
Donald Trump’s new tariffs may have an impact on the imports of the company, as the US is its largest market. The company’s recent announcement predicted that it would have sales between EUR44.5 and EUR46.5, and its EBITDA will fall again between EUR9.2 and EUR9.7.
The company’s exposure to the euro is high, as it has reached its highest levels in many years.
Roundup continues to be a problem. The company has paid out EUR10 billion already of the EUR16 billion it has allocated to cover claims. Analysts believe that once the crisis is over, the company can move on. HSBC analysts said:
Once the legal overhang has been cleared up, the company will be better equipped to offer shareholders a plan to reduce the debt on the balance sheet. This could allow it to make investments in its pharmaceutical pipeline.
Stock price Analysis of Bayer
On the daily chart, it is clear that Bayer’s share price has bottomed out at EUR18.20. It also formed a “double-bottom” pattern. The price has moved up to EUR25.32 – the highest move since March 5 – and is now above the neckline.
The stock of Bayer has formed another bullish pattern called a flag, which is a common bullish signal in technical analysis. The golden cross was formed when the moving averages of 50 and 200 days crossed.
The stock is therefore likely to have a breakout in the bullish direction. EUR30 will be the next level of interest, which represents a 16% increase over the current price. If the stock moves above EUR30, it could lead to further gains up to EUR50.
The post Bayer shares are rising: is there more upside to the share price? This post may be updated as new information unfolds
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