Analyst Note
| Damien Conover, CFA |Bayer announced 2021 guidance below our expectations, as greater than anticipated coronavirus headwinds are weighing on the crop science business. We are lowering our fair value to EUR 78 ($23 on the ADR) from EUR 85 ($25) based on the lower-than-expected guidance. Despite the challenges, Bayer continues to be well positioned within the healthcare and agriculture markets and we continue to rate the firm with a wide moat rating. While Bayer faces several challenges in the crop science segment, including COVID-19 pressures and a glyphosate litigation overhang, we expect over the long term, the firm will return to stability, boosting the prospects for an improved valuation.