Skip to Content


Rating as of

Morningstar’s Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat




Bayer Announces Weaker Than Expected Outlook for 2021, Leading to Fair Value Estimate Reduction

Damien Conover, CFA Sector Director

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.

Read Full Analysis

Company Profile

Business Description

Bayer is a German healthcare and agriculture conglomerate. Healthcare provides just over half of the company's sales and includes pharmaceutical drugs as well as vitamins. The company has a crop science business that includes seeds, pesticides, herbicides, and fungicides, which was expanded through the acquisition of Monsanto.

Kaiser-Wilhelm-Allee 1
Leverkusen, 51368, Germany
T +49 214301
Sector Healthcare
Industry Drug Manufacturers - General
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type
Employees 101,168