Bayer AG: Revisiting valuation with de-risked litigation path; raising PT 20% to €60, reiterate OW

Research evidence excerpt

Bayer AG: Revisiting valuation with de-risked litigation path; raising PT 20% to €60, reiterate OW

Equity Research

European Pharmaceuticals, Biotechnology & Life Sciences

14 July 2026

Bayer AG

Revisiting valuation with de-risked

litigation path; raising PT 20% to

BAYGn.DE/BAYN GY OVERWEIGHT€60, reiterate OW

Unchanged

SCOTUS win lifts odds of full litigation resolution to ~95%, European Pharmaceuticals,

Biotechnology & Life NEUTRAL

Sciencesfurther narrowing the conglomerate discount, but class Unchanged

action settlement needed for resolution (next updates 15th Price Target EUR 60.00

July/19th August). Our enhanced Crop Science outlook and raised 20% from EUR 50.00

higher FY27 multiple (vs CTVA) supports upside; raise Price (13-Jul-26) EUR 49.92 Potential Upside/Downside +20.2%

Source: Bloomberg, Barclays ResearchPT €60/sh.

Market Cap (EUR mn) 49042Following: i) the recent positive SCOTUS decision (BARC view), ii) Federal Judge decision on the

Shares Outstanding (mn) 982.42outstanding MDL (post-close 9th July – BAYN/plaintiffs asked to submit further filings pre-16th

Free Float (%) 97.10July), and iii) with a final approval hearing scheduled for 19th August (opinion expected within a

52 Wk Avg Daily Volume (mn) 3.1couple of days), we revisit our BAYN valuation. Raising our PT from €50 to €60, this reflects: 1)

Dividend Yield (%) 0.22reduced conglomerate discount assumption from 22% to 19% (~95% POS of full litigation

Return on Equity TTM (%) -7.04resolution), 2) expanded Crop Science modelling to better reflect acreage and pricing dynamics,

Current BVPS (EUR) 29.363) raised Crop Science FY27 SOTP multiple (to 12.0x from 10.0x) to better reflect peers such as

Source: Bloomberg

CTVA (13.0x).