Bayer shares about to cut dividends? UBS drastically lowers price target - financial expert analyses

Bayer shares about to cut dividends? UBS drastically lowers price target - financial expert analyses

According to a report by www.wallstreet-online.de,

Bayer shares have suffered some setbacks in the last two weeks, resulting in significant selling pressure. Due to these developments, one of the largest Swiss banks, UBS, has drastically reduced the price target for Bayer shares from 90 to 34 euros and downgraded its purchase recommendation from “Buy” to “Neutral”. Despite the current low share price, analysts are concerned about the potential obstacles for the company, such as tax and synergy issues in the event of a company split. Additionally, Bayer's dividend is expected to be reduced, although the payout ratio will be maintained.

Based on current developments and UBS forecasts, the analysts' average buy recommendation is an increase. The average price target is 54.24 euros, which corresponds to an upside potential of over 74 percent.

The setbacks with asundexian and glyphosate have undoubtedly created uncertainty regarding Bayer's future development. The dividend reduction will also be disappointing news for shareholders. This could lead to further losses in the stock and a decline in investor confidence. Therefore, the short and medium-term outlook for Bayer could continue to be uncertain and make investing in the company less attractive.