Goldman Sachs Upgrades Bayer (BAYRY) to Buy

On Thursday, Goldman Sachs analyst James Quigley upgraded Bayer Aktiengesellschaft (OTC:BAYRY) to Buy from Neutral, while setting a price target of EUR 33.

Quigley indicated that the stock’s risk/reward profile appears positive as it approaches H2 2025, with potential catalysts that could drive a re-rating in the medium term.

Goldman Sachs Upgrades Bayer (BAYRY) to Buy, Sets a EUR 33 PT

A closeup of pills in a pharmacy, representing the high quality medications of the company.

This upgrade follows Bayer’s strong operational start to the year, characterized by cost discipline in its Crop Science division and robust momentum in its underlying Pharmaceuticals business. Goldman Sachs suggests that these factors indicate Bayer may have reached the bottom of its negative earnings revision cycle. In key business developments, Bayer’s EPS stood at EUR 2.49 in Q1 2025, keeping the company on track to achieve EUR 4.50 to 5.00 at constant currencies for the full year.

While sales in the company’s Crop Science division declined by 3% due to regulatory impacts affecting higher-margin sales, the Pharmaceuticals segment sales grew by 4% due to an 80% year-over-year increase in Nubeqa and Kerendia sales. Nubeqa is a prostate cancer drug, while Kerendia is used to treat chronic kidney disease associated with type 2 diabetes. The Consumer Health segment sales also increased by 2.5%.

Bayer Aktiengesellschaft (OTC:BAYRY) is a global life science company. The company operates through Pharmaceuticals, Consumer Health, and Crop Science segments.

While we acknowledge the potential of BAYRY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.