Berenberg: Bayer Legal Victories Clear Path for Potential Crop Science Split; Price Target Up
Berenberg raised its price target for Bayer (BAYN.F) to 55 euros from 40.50 euros, with an unchanged hold rating, noting recent legal wins have created a path for an "amicable" spin-off of its crop science division. "We believe Bayer's twin victories in the Durnell glyphosate case and the return of the glyphosate settlement oversight to Missouri for a 19 August fairness hearing could facilitate an eventual break-up of the company. We suspect that the most likely mechanism to effect such a break-up would be a partial [initial public offering] of the 'new Monsanto' business, perhaps similar in structure to BASF's [BAS.F] own ambitions for an IPO of its agricultural solutions unit in 2027," according to a Tuesday note. Analysts said the potential strategy could satisfy worker representatives on the supervisory board by keeping the aspirin brand at Bayer while offering the pharmaceutical unit a cash injection or debt reallocation, positioning it to boost investments or pursue merger opportunities. On the earnings side, the research firm said the upward revisions to its EPS forecasts for full-year 2026 to 2028 are driven by "modestly higher" soft commodity prices supported by an.
Berenberg raised its price target for Bayer (BAYN.F) to 55 euros from 40.50 euros, with an unchanged hold rating, noting recent legal wins have created a path for an "amicable" spin-off of its crop science division. "We believe Bayer's twin victories in the Durnell glyphosate case and the return of the glyphosate settlement oversight to Missouri for a 19 August fairness hearing could facilitate an eventual break-up of the company.
We suspect that the most likely mechanism to effect such a break-up would be a partial [initial public offering] of the 'new Monsanto' business, perhaps similar in structure to BASF's [BAS.F] own ambitions for an IPO of its agricultural solutions unit in 2027," according to a Tuesday note.
Analysts said the potential strategy could satisfy worker representatives on the supervisory board by keeping the aspirin brand at Bayer while offering the pharmaceutical unit a cash injection or debt reallocation, positioning it to boost investments or pursue merger opportunities.
On the earnings side, the research firm said the upward revisions to its EPS forecasts for full-year 2026 to 2028 are driven by "modestly higher" soft commodity prices supported by an.