Bayer AG

BAYN: XETR (DEU)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€37.00	Wvlyr	Lhlx

Undervalued Bayer Posts Strong Second Quarter, but Legal Issue Overhang Remains

Damien Conover

Aug 4, 2022

Bayer reported strong second-quarter results ahead of our projections, but we don’t expect any major changes to our fair value estimate based on outperformance that may not last. We attribute a significant portion of the results to strong glyphosate pricing, which could change in 2023 as more competitive production comes on line, likely in China. Nevertheless, all segments of Bayer are posting steady gains, supporting the firm's wide moat and reinforcing our undervalued call on the stock.

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