Bayer: shares having a 'morning after' feeling
(CercleFinance.com) - After rising slightly yesterday following its capital markets day in London, the Bayer stock seems to be having a "morning after" feeling on Thursday, as analysts reflect on the announcements the German chemicals and drugs group made at the meeting.
In a note issued this morning, UBS maintained its "buy" rating on the share, but cut its target price from 122 euros to 110 euros, after adjusting its estimates for the pharma and crop science divisions.
However, UBS thinks that the CMD brought a "degree of clarity" and describes the group's free cash flow targets as "encouraging."
"We have never doubted the strategic sense of the Monsanto acquisition," the broker added, noting that Bayer made a strong and compelling case for the acquisition in terms of complementary portfolio, and R&D capabilities.
Its also said that Bayer has committed to increasing its dividend, potential buybacks on the back of disposal gains and deleveraging.
After gaining 0.4% on the announcements on Wednesday, the share was dropping 2.8% at 63.9 euros today.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
In a note issued this morning, UBS maintained its "buy" rating on the share, but cut its target price from 122 euros to 110 euros, after adjusting its estimates for the pharma and crop science divisions.
However, UBS thinks that the CMD brought a "degree of clarity" and describes the group's free cash flow targets as "encouraging."
"We have never doubted the strategic sense of the Monsanto acquisition," the broker added, noting that Bayer made a strong and compelling case for the acquisition in terms of complementary portfolio, and R&D capabilities.
Its also said that Bayer has committed to increasing its dividend, potential buybacks on the back of disposal gains and deleveraging.
After gaining 0.4% on the announcements on Wednesday, the share was dropping 2.8% at 63.9 euros today.
Copyright (c) 2018 CercleFinance.com. All rights reserved.