- The selloff in Bayer (DE:BAYGN) (OTCPK:BAYRY +2%) following this month's court ruling tying its Roundup weedkiller to a potentially carcinogenic connection has gone far enough, says Berenberg Bank, which upgrades shares to Buy from Hold with a €113 price target.
- Since the Aug. 10 court loss, shares have tumbled €15, which Berenberg's Alistair Campbell calls “extreme” and estimates the risk to the company as closer to €3.40/share, or $3.8B.
- “We recognize that the glyphosate issue may take time to resolve, but we think Bayer has ample opportunity between now and the end of the year to showcase the growth prospects of the new group and rebuild investor confidence,” Campbell writes, adding that the evidence against glyphosate is “thin."
- Campbell says he is looking forward to Bayer's conference call this Thursday about the litigation, as the company likely will deliver a "robust defense of glyphosate's safety."
- Now read: Olin Corporation 2018 Q2 - Results - Earnings Call Slides
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