DAX remains stable – Bayer shares are booming after recovering from lows!

DAX remains stable – Bayer shares are booming after recovering from lows!

On Tuesday morning, the DAX showed hardly any movement and hovered around the previous day's close. Traders report a wait-and-see attitude among market participants, who are waiting for fresh impulses from the corporate world or macroeconomic signals. This should be seen particularly against the background of the markets' positive reaction to the agreement between the USA and China to reduce tariffs, which is seen as a sign of easing in the trade conflict and strengthens investor confidence.

In this uncertain market environment, it stands out finance.net out. The most traded stocks are Bayer AG and Munich Reinsurance Company (Munich Re). While the Bayer share price rose significantly due to positive company news, Munich Re started at a noticeable discount after presenting quarterly figures, despite a solid operating profit. This different market reaction reflects the current sentiment.

Bayer AG on course for growth

Bayer shares, which rose by almost four percent on the last trading day of the previous week, are recovering from historic lows and have reached the EUR 20.00 mark again. This could be seen as an important milestone as the company recently reported a positive development in a US court case, which reduces legal risks. However, Bayer continues to struggle with net financial debt of around 35 billion euros, which has increased tenfold, primarily due to the takeover of Monsanto.

Despite these positive share price developments, Bayer has failed to significantly reduce its debt. CEO Bill Anderson is planning an extensive savings program to increase efficiency, while shareholders will temporarily have to be content with a statutory minimum dividend. This high level of debt also limits the company's inorganic growth, such as through mergers and acquisitions.

Outlook for the Pharma Division

Bayer's pharmaceutical division needs new growth drivers, especially as top sellers Xarelto and Eylea lose their patent protection and are already suffering from generic competitive pressure. The growth potential from cancer drug Nubeqa remains uncertain and will be closely monitored in the coming quarters. A revenue contribution from the heart drug Attruby (Acoramidis) is expected from 2024, following a licensing deal that Bayer secured in March 2023. The EU approval decision for Attruby is expected in 2025, but outstanding glyphosate and PCB litigation remains in the US weighing on the company.

Although the technical chart condition of Bayer shares has improved in the short term, a sustainable trend reversal is not yet in sight The shareholder reported. Investors therefore remain in a wait-and-see attitude, eager to see what impulses future trade and corporate news will bring.