Bayer: shares fall after broker downgrade
(CercleFinance.com) - Investment bank Barclays cut its rating on Bayer on Tuesday, causing a fall in the share price of the German pharmaceutical and agriculture conglomerate.
Bayer shares were down over 2% in late morning trade, the second biggest loser on Germany's bluechip DAX index, after Barclays downgraded the stock from "overweight" to "equal weight".
It also cut its price target from 75 euros to 50 euros.
The downgrade comes as earnings season for pharma companies formally starts today, with the report of US giant Johnson & Johnson.
"In the short term, we see the lack of catalysts as relatively bearish for pharma," Barclays wrote in a sector note, saying that the increased likelihood of a Democratic victory in the US may increase concerns around broader drug price legislation.
Bayer shares have now fallen over 37% in 2020.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Bayer shares were down over 2% in late morning trade, the second biggest loser on Germany's bluechip DAX index, after Barclays downgraded the stock from "overweight" to "equal weight".
It also cut its price target from 75 euros to 50 euros.
The downgrade comes as earnings season for pharma companies formally starts today, with the report of US giant Johnson & Johnson.
"In the short term, we see the lack of catalysts as relatively bearish for pharma," Barclays wrote in a sector note, saying that the increased likelihood of a Democratic victory in the US may increase concerns around broader drug price legislation.
Bayer shares have now fallen over 37% in 2020.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.