Berenberg Keeps Bayer at "Hold" Despite Uncertainties

The private bank Berenberg has maintained its "Hold" rating on Bayer stock with a price target of 30 euros. Analyst Sebastian Bray emphasizes in a recent study that the combination of a dividend cut and a legal success in the appeal of a lawsuit concerning the chemical PCB significantly reduces the risk of a worst-case scenario. However, the analyst's assessment of the pharmaceutical and agrochemical company's earnings prospects remains cautious. Despite these interim victories, Berenberg notes that the economic outlook for Bayer is not optimal. The continuing challenges in the company's core markets are likely to keep the stock under pressure.