Deutsche Bank Upgrades Bayer to Buy After US Supreme Court Ruling Lifts Litigation Overhang

Deutsche Bank Research upgraded its investment opinion on Bayer (BAYN.F) following the recent US Supreme Court ruling that should contain the company's multi-billion-dollar glyphosate litigation. "Last week's Supreme Court ruling is pivotal to Bayer's multi-pronged approach to draw a line under its glyphosate liability. The ruling has been one of the two key pillars Bayer has been focusing on to contain its glyphosate litigation, alongside the class settlement. This ruling makes the settlement considerably more likely to hold. All in all, we believe it should effectively cap the glyphosate exposure within existing provisions," analysts said Thursday, noting investor focus should shift to fundamentals. After four consecutive years of contraction, the research firm said the revenue and profitability of the German company's pharmaceutical and crop science units are poised for a turnaround in 2027. The recovery is expected to be supported by growing pharmaceutical margins and new potential blockbuster rollouts, as well as cost-cutting and new products in the crop segment. Accordingly, Deutsche Bank forecasts a 9% EBITDA compound annual growth rate and a 13% core EPS CAGR for.