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Investing.com - Goldman Sachs has raised its price target on Bayer AG (ETR:BAYGN) (ETR:BAYN) (OTC:BAYRY) to EUR35.00 from EUR34.00 while maintaining a Buy rating, following what it considers an overdone market reaction to the company’s second-quarter results.
The German pharmaceutical and agricultural company saw its shares decline 9.9% after reporting its pre-released Q2 2025 results, significantly underperforming the market index which fell 2.8%. Goldman Sachs expressed surprise at the extent of the share price drop, particularly given that the litigation updates provided were viewed as "a positive step forward."
Goldman Sachs made only minor adjustments to its earnings estimates for Bayer, with approximately 1-2% increases in sales and EBITDA projections across 2025-2030. The firm sees "positive risk/reward into 2H’25 newsflow" with 10-25% upside potential versus limited downside if the U.S. Supreme Court accepts the Durnell case.
The investment bank also highlighted potential upside from the OCEANIC-STROKE trial results for asundexian, projecting more than 13% upside versus less than 5% downside depending on positive or negative outcomes. Goldman Sachs expects positive earnings momentum from 2026-2030, driven largely by Bayer’s Pharmaceutical (TADAWUL:2070) division.
Goldman Sachs’ new EUR35 twelve-month target price suggests 40% upside potential from current levels, with the firm citing continued positive sales trajectories for key pharmaceutical franchises including Nubeqa, Kerendia, and the base portfolio as potential catalysts for further growth.
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