Bayer shares have a 16 percent chance: Experts see high return potential despite price declines

Bayer shares have a 16 percent chance: Experts see high return potential despite price declines

According to a report by www.n-tv.de, Bayer shares have been on the decline since spring 2023 and recorded an annual low of EUR 30.22 on November 29, 2023. Experts consider the stock to be undervalued and recommend using bonus certificates with a cap to take advantage of the sharp price drop in November. With the barriers at 20 euros and the cap at 39 euros, a potential annual return of 16.49 percent could be achieved.

Bayer shares are currently trading at 32.30 euros, and the HSBC bonus certificate with cap (ISIN: DE000HS3J4Z8) can be purchased at a price of 33.48 euros. This allows for a potential gross return of 16.49 percent in one year if the share price does not fall by 38.08 percent to 20 euros or below by the valuation date.

Investors run the risk that the certificate will be repaid with a loss if Bayer shares touch the barrier at 20 euros and are below the cap on the valuation day. Despite these risks, many experts still see Bayer shares as a long-term holding position.

It is important to emphasize that this information is not intended to be an investment recommendation and no liability is assumed for the accuracy of the data. Nevertheless, it is clear that bonus certificates with a cap represent an opportunity for investors to achieve high returns despite the sharp drop in Bayer's share price.