Investment bank downgrades Germany’s Bayer to 'neutral' rating

15 March 2012 16:56  [Source: ICIS news]

LONDON (ICIS)--JP Morgan Cazenove has downgraded Germany’s Bayer to a “neutral” rating from “overweight”, on the back of an uncertain 2012 for the company’s pharmaceutical business, the investment bank said on Thursday.

JP Morgan Cazenove said it was concerned how well some of Bayer’s pharmaceutical products will perform in 2012, as launches in the US have so far been slow.

However, the bank said it remains confident that Bayer will see these products improve in the long term.

It added that Bayer will also gain momentum from expansions in its crop science and material science businesses.

JP Morgan Cazenove raised Bayer’s share target price to €62 ($81) from €58.

At 16.03 GMT, Bayer’s shares on the London Stock Exchange were trading at €54.53, down by 1.32% from the previous close.

($1 = €0.77)  

By: Leigh Stringer
+44 208 652 3214

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