Analyst Note
| Damien Conover, CFA |Bayer reported third-quarter results below our and consensus S&P Cap IQ expectations, and while we expect a slight reduction in our fair value estimate due to the weak quarter, we continue to view the stock as undervalued. We believe the market is ascribing too much value destruction to the ongoing glyphosate litigation and not enough value to the pipeline, which also helps support our wide moat rating for the firm.