Bayer Wins DZ Bank Upgrade After $2.45 Billion Eye-Drug Bet and Strong Q1
20.05.2026 - 10:11:54 | boerse-global.de
Bayer has re-entered the biopharma acquisition arena with a $2.45 billion bet on ophthalmology, striking a deal to buy Perfuse Therapeutics outright for rights to PER-001, a Phase II endothelin receptor antagonist targeting glaucoma and diabetic retinopathy. The upfront payment of $300 million marks the German conglomerate's first sizable pharma buy since it snapped up Vividion in 2021 — and it comes at a moment when the stock is trading nearly 22% below its February peak.
The strategic push is backed by solid first-quarter numbers that have prompted at least one major analyst to turn more bullish. DZ Bank lifted its rating on Bayer from “Hold” to “Buy” on Tuesday, raising the price target to €51 from €44 — a chunky 33% upside from the prior close of €38.45. Analyst Peter Spengler pointed to the operational results and progress on restructuring as key drivers. The new target sits above the consensus of roughly €48.58, echoing the optimism of Barclays’ Charles Pitman-King, who also rates the stock a Buy with a €48 target and sees 2026 as the trough year for pharma revenues ahead of mid-single-digit growth from 2027.
Underlying the Q1 performance, Bayer posted group revenue of €13.4 billion, up 4.1% on a currency- and portfolio-adjusted basis. EBITDA before special items jumped 9.0% to €4.45 billion, while group net profit more than doubled to €2.76 billion — helped by the €250 million sale of antibiotic Avelox. Core earnings per share rose to €2.71 from €2.40 a year earlier, a 12.9% gain. Yet the cash story was far less pretty. Free cash flow sank to negative €2.32 billion, far worse than the negative €1.53 billion a year ago, as roughly €2 billion went out the door to settle litigation linked to PCB and glyphosate.
Should investors sell immediately? Or is it worth buying Bayer?
Legal overhang remains the central drag. The $7.25 billion Roundup settlement is still pending final court approval, and plaintiffs have until June 2026 to opt out. A further decision point looms this June, when the opt-out window for a subset of claimants closes — a stress test that could either cement or crack the deal. The dividend was held at a symbolic €0.11 per share as management prioritizes debt reduction and settlement payments over shareholder returns.
Bayer shares have more than halved from their 52-week low of €23.41 set in May 2025, but they are still well off the year’s high of €49.17 hit in February. Over the past 30 days, the stock has slipped about 7%, trading sideways as investors weigh the acquisition against the cash drain. The next catalyst is scheduled for May 27, when Bayer management will present at the Deutsche Bank European Champions Conference in Frankfurt. Investors are expecting updates on the new “Dynamic Shared Ownership” organizational model and concrete steps to cut net debt — a chance for the growing analyst optimism to find operational backing.
For now, the ophthalmology wager underscores a leadership team willing to invest through legal turbulence. The Perfuse deal, valued at up to $2.45 billion including milestones, is Bayer’s most aggressive pipeline move since the Vividion acquisition and signals a conviction that the legal drag will eventually loosen. With the stock priced at roughly 20% below its February high and two analysts now calling it a buy, the market is betting on a turnaround that depends as much on courtroom outcomes as on clinical success.
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