The Bayer share price jumped by over 3% after the company published encouraging financial results. BAYN jumped to a high of €27.43 a, up from this month’s low of €25.74. So, will these gains hold?
Bayer stock jumps after earnings
The Bayer stock price rose after the company reported better-than-expected financial results. Its adjusted earnings rose to €1.51 billion, higher than the median estimate of €1.29 billion that analysts were expecting.
Most importantly, the company announced that it was confirming it outlook for the year even as provisions for its Monsanto crisis continued. It now expects its annual revenue to rise by 2% YoY from last year’s €22.3 billion.
Bayer’s nine-month revenue rose by 1% to €34.1 billion, while it core earnings-per-share rose to €4.29. Its pharmaceutical business made €4.335 billion, down from the previous €4.5 billion.. The EBITDA remained unchanged at €1.07 billion.
The consumer health business made €1.415 billion from the previous €1.4143 billion, helped by its dermatology and digestive health businesses that helped to offset the slowdown in allergy and cold categories.
Meanwhile, the crop science division, which has cost it billions of euros over the years slowed to €3.85 billion. This slowdown was offset by a jump in corn seed business, whose revenue rose by 16%. The CEO said:
“We’re convinced our multi-pronged strategy is the right one. As we continue to advance it, we’ll continuously adjust our approaches to resolution. Bayer is making significant progress and is confident the company will be able to significantly contain the litigation risk by the end of 2026.”
These results came as the company continues to ponder on what to do with its Roundup product, which is one of the most common weedkillers in the world. According to Bloomberg, the company is pondering on whether to discontinue a product that makes it billions amid heightened litigation risk.
The company is also under pressure from activist investors who are calling for the breakup of the company, a move that will separate the crop science division from its pharmaceutical and consumer health. The argument is that such a separation would be a good way to create value to the company.
Bayer share price technical analysis
The daily timeframe chart shows that the BAYN stock price has rebounded in the past few months. It has jumped from a low of €18.32 to a high of 29. This rebound happened as investors started to predict the end of the litigation.
The stock is attempting to move above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls are in control.
However, the stock has formed a double-top pattern at €29.8, a popular bearish reversal pattern. It remains below the Supertrend indicator and the Ichimoku cloud indicators, a sign that bears are in control.
Therefore, the most likely scenario is where the stock remains in this range for a while. Whether it makes a bullish or bearish breakdown will depend on flipping key levels like €25 and €29.
A move above the resistance level at €29 will confirm a bullish breakout, while a drop below the support at €25.70 will point to more downside. In this case, the key targets will be at €25 and €30.
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