Equity Snap: Bayer (BAYN GR): The focus might return to fundamentals

Research evidence excerpt

Equity Snap: Bayer (BAYN GR): The focus might return to fundamentals

25 June 2026

Equity Snap: Bayer (BAYN GR) Equities Pharmaceuticals

The focus might return to fundamentals Germany

◆ Key catalyst in favour of Bayer, focus on path forward – Rajesh Kumar*

class-action resolution, balance sheet de-gearing, and Senior Global Life Sciences & Healthcare Analyst HSBC Bank plc

reinvestment rajesh4kumar@hsbcib.com

+44 20 7991 1629

Morten Herholdt*

Bayer (BAYN GR, EUR39.59, Buy, TP EUR60.00) Global Life Sciences & Healthcare Analyst

HSBC Bank plc

(Priced as of 24 Jun 2026)

morten.herholdt@hsbc.com

+ 44 20 7992 4082

What has happened: The US Supreme Court decision (7-2) in favour of Bayer

Sidharth Sahoo*

concludes that the US EPA determination pre-empts state labelling requirements. Global Life Sciences & Healthcare Analyst

This potentially limits risk of future litigation on the matter, offering a clear path to HSBC Securities and Capital Markets (India) Private

Limited

focus back on the fundamentals of the business. sidharth.sahoo@hsbc.co.in

+91 77 3813 4135

Where are we in the class actions: The company is in the midst of negotiation of

Akshata Agarwal*

class-action settlement (see Litigation settlement can drive multiple re-rating, 18 Associate

Bangalore

February 2026). The next step is the fairness review. Whilst the opt-ins for the

settlement were not 100%, the company was hoping to move forward. The Supreme

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

Court ruling creates a risk for the class-action participants who have not opted in for not registered/ qualified pursuant to FINRA regulations

the settlements, potentially increasing incentives for class-action opt-ins rates, as

today’s ruling will apply to those who have chosen to opt out.