Bayer-Aktie: UBS AG Sieht Keine Kaufempfehlung

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Post on Nov 12, 2024

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Bayer-Aktie: UBS AG Sees No Buying Opportunity

The Swiss investment bank UBS AG has downgraded its rating on Bayer AG shares from "Neutral" to "Sell," citing concerns about the company's ongoing legal battles and financial outlook.

Uncertainty Surrounding Legal Battles

The primary driver behind UBS AG's decision is the continued uncertainty surrounding Bayer's legal battles related to the weedkiller Roundup. The company is facing thousands of lawsuits alleging that Roundup causes cancer, and the legal costs associated with these lawsuits are mounting.

Financial Outlook Remains Murky

In addition to the legal challenges, Bayer's financial outlook remains uncertain. The company is facing pressure to cut costs and streamline its operations, and its earnings have been impacted by the legal proceedings.

Potential for Further Share Price Decline

UBS AG believes that the combination of legal risks and a challenging financial outlook could lead to further declines in Bayer's share price. The bank has set a target price of €48 for the stock, implying a potential downside of around 20% from current levels.

Analyst Commentary

"While Bayer has taken steps to address its legal liabilities, we believe the company faces a significant amount of uncertainty," said a UBS AG analyst in a research note. "We believe the potential for further litigation and financial pressure could weigh on the stock in the near term."

Investor Takeaway

Investors considering investing in Bayer AG should be aware of the significant risks associated with the company's current situation. The legal battles surrounding Roundup and the uncertain financial outlook are major concerns for investors.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.