Bayer: 1Q call focussed on litigation and macro impact to Crop

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Bayer: 1Q call focussed on litigation and macro impact to Crop

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Bayer

1Q call focussed on litigation and macro

impact to Crop

Reiterate Rating: BUY | PO: 50.00 EUR | Price: 37.08 EUR

1Q call key takes; litigation timelines, Crop macro impacts 12 May 2026

Key takes from 1Q call: 1) On glyphosate litigation timelines, Bayer noted it will get Equity

some visibility on class opt-in/outs but will get the formal update from the settlement

administrator 1 week after June 4th deadline, with Bayer wanting to take some time to

Key Changesevaluate before communicating and noting “may take some weeks”. Bayer remains

confident on how the oral hearing went. 2) Bayer gave a big-picture overview of (EUR) Previous Current

geopolitical impact to business, notably Crop, simply noting it’s evaluating the evolving 2026E EPS 4.02 4.22

situation and that it’s hard to predict final planting decisions at this stage. US season is 2027E EPS 4.17 4.37

mostly done, and key debate is impact to 2H and Southern hemisphere planting season. 2028E EPS 4.69 4.93

Directionally, it noted reduction in acreage may not be as much as initially thought. It

noted potential for glyphosate pricing to offer upside if sustained. Overall, Bayer gave as Sachin Jain, CFA >>

Research Analyst

much visibility as it has, but it remains an uncertain situation. We increase EPS c5% in MLI (UK)

combination across Crop / Pharma. We reiterate our Buy rating on litigation risk-reward s.jain@bofa.com

(class opt-out rate June 4, SCOTUS mid-July) and asundexian data underpinning Eur3bn Charlie Haywood >>

peak sales, with upside to mid-single-digit Eurbn to change the Pharma growth outlook MLI (UK)

(we now forecast a high-single-digit % EBITDA CAGR – see detail overleaf). charlie.haywood@bofa.com

Alexander Moore >>