Bayer: Lowering 2023 Guidance Largely Based on Increased Glyphosate Competition

Bayer lowered guidance for the full-year 2023 largely based on declines in the sales of glyphosate products, but we don’t expect a major impact to the firm’s fair value estimate or moat based on the lower expectations. We had already incorporated lower projections for 2023 than management’s guidance based on the first-quarter results. Given the return of competitive glyphosate production, we had expected a major decline in herbicide crop science sales. Also, the lowered outlook for 2023 doesn’t have a major impact on our long-term outlook for the firm.