{"date":"2026-02-18T00:00","headerImageUrl":"https://structuredproducts-ch.leonteq.com/product-news/product-homepage-banner/bayer26_leonteq-structured-products_product+homepage+banner.jpg","subTitle":"Growing Confidence","windowTitle":"Bayer","category":"underlying-in-focus","title":"Bayer","body":"<p>For a long time, Bayer appeared in the price lists marked in red. Recently, however, the color changed: the perennial problem case received strong tailwinds. Over a three-month period, Bayer shares gained nearly two thirds, outshining all other DAX members. The rally can be traced back to three solid catalysts: a third quarter 2025 that exceeded market expectations operationally, a surprisingly favorable stance by the US government in the Roundup complex, and positive pipeline and regulatory news. Altogether, this fits perfectly into the picture of an accelerating \u201cde-risking\u201d phase \u2013 not because risks are disappearing, but because they suddenly appear more predictable. The scientifically most important price driver is called \u201cAsundexian.\u201d Final study data showed that the blood thinner reduces the risk of a recurrent stroke by 26% without increasing bleeding risk. The company therefore reaffirmed the drug\u2019s blockbuster potential, implying possible annual sales of more than EUR 1 billion. According to management, it is still too early for a precise revenue estimate, as the exact approval conditions and pricing negotiations must first be clarified. However, Bayer is already examining additional indications for the active ingredient. This is an important development, as several of the group\u2019s key revenue drivers are facing increasing pressure from generic competition.<\/p>\n\n<div><generic-chart title=\"Bayer (in EUR)\"> \n    <chart-line title=\"Bayer\" path=\"Chart_Bayer26.csv\" format=\"date, number\"><\/chart-line> \n    <x-axis type=\"datetime\"><\/x-axis> <\/generic-chart><\/div>\n<footer>Source: Refinitiv, as of February 17, 2025<br />Historical data is not a reliable indicator of future performance.<\/footer>\n\n<h3>Pharmaceuticals: Focus on growth and margins<\/h3>\n<p>Asundexian is only one source of hope; future growth is also expected to be driven by the cancer drug \u201cNubeqa,\u201d the kidney medicine \u201cKerendia,\u201d the heart treatment \u201cBeyonttra,\u201d and \u201cLynkuet\u201d for menopausal symptoms. By 2027 at the latest, the pharmaceutical division is expected to return to a growth trajectory. The Leverkusen-based company is targeting revenue growth in the mid-single-digit percentage range. An improvement in the operating margin is also anticipated, starting in 2028. By the end of the decade, a margin of 30% is on the agenda. For the completed 2025 financial year, revenue growth of up to 3% is expected, with an operating margin projected between 24% and 26%. The exact figures will be revealed on February 25. On average, analysts expect revenues of up to EUR 48 billion, corresponding to growth of 3%. Operating profit is forecast between EUR 9.7 and 10.2 billion, representing a decline of 4% to an increase of 1% compared to the previous year. Investors will not only examine the historical numbers but will pay particular attention to comments on new growth drivers such as Asundexian. Meanwhile, the Sword of Damocles known as Roundup continues to hang over the German company.<\/p>\n\n<div>\n<generic-chart title=\"Outlook for the 2025 Financial Results \">\n  <x-axis categories=\"Revenue, Ebitda, Earnings per share\">\n      <chart-column title=\"2025 (%F8)\" data=\"47,10,5\" format=\"number\"/>\n      <chart-column title=\"2024\" data=\"46.6,10.1,5.05\" format=\"number\"/>\n<\/generic-chart> \n<\/div>\n<footer>Source: Bayer, as of February 2026<br />Historical data is not a reliable indicator of future performance.<\/footer>\n\n<h3>Glyphosate: Court date in sight<\/h3>\n<p>Speaking of Roundup: in December 2025, the company received tailwinds in the multi-billion-dollar legal dispute over alleged cancer risks of the herbicide from the US government. The Solicitor General recommended that the Supreme Court take up the case. And so it did: in mid-January, the US Supreme Court announced it would fundamentally address the glyphosate dispute. For Bayer, this marked an important interim victory, and management is now hoping for a landmark ruling that could curb the wave of lawsuits over the herbicide. The Supreme Court is expected to clarify whether approval of the product by the US Environmental Protection Agency (EPA) without a cancer warning precludes lawsuits at the state level. A victory for Bayer would mean fewer future lawsuits and a reduced need for provisions; a defeat, however, would increase the likelihood of further, difficult-to-predict court rulings. There is not much time left until the Supreme Court hearing in April 2026 and a possible ruling by June.<\/p>\n\n<h3>Double-digit earnings potential<\/h3>\n<p>Analysts currently rate Bayer shares predominantly as \u201cBuy.\u201d However, the average price target of EUR 41.10 is around one tenth below the current share price. The recent sharp rise has rendered many research forecasts obsolete. This could be a perfect time for yield optimization products such as the new softcallable barrier reverse convertibles. These instruments can turn a pause in the dynamic upward trend into double-digit percentage gains. The CHF-denominated BRC offers a yield of 10.20% p.a. with a maximum maturity of 12 months. On the downside, the capital-protected product leaves room for the underlying to fluctuate. The barrier is set at 55% of the initial level. The EUR-denominated product offers an opportunity of 12.00% p.a. with the same risk buffer. Both securities also feature a softcallable function, which becomes active for the first time after six months and may lead to early redemption. The coupon is paid out quarterly on a pro rata basis.<\/p>\n\n<h3>Callable Barrier Reverse Convertible<\/h3>\n<div>  \n    \n    <SavedSearch :allProducts=\"false\" :filter=\"{&quot;countrySpecificTitles&quot;:[],&quot;distanceToBarriers&quot;:[],&quot;underlyings&quot;:[],&quot;maturityRangeKey&quot;:[],&quot;marketVenues&quot;:[],&quot;productTypes&quot;:[],&quot;barrierTypes&quot;:[],&quot;issuers&quot;:[],&quot;omni&quot;:&quot;\\&quot;CH1484589846\\&quot;\\&quot;CH1484589861\\&quot;&quot;,&quot;strikeLevelRanges&quot;:[],&quot;productCategories&quot;:[],&quot;displayColumns&quot;:[&quot;coupon&quot;,&quot;underlying&quot;,&quot;barrierPercentage&quot;,&quot;currency&quot;,&quot;lastTradingDate&quot;,&quot;tenor&quot;,&quot;bidAsk&quot;,&quot;subscriptionEndDate&quot;,&quot;valor&quot;,&quot;documentLinks&quot;],&quot;partner&quot;:&quot;LEONTEQ&quot;,&quot;sortFields&quot;:[{&quot;fieldName&quot;:&quot;snapshot.product.investment.investment_currency&quot;,&quot;sortOrder&quot;:&quot;ASC&quot;}],&quot;productGroups&quot;:[],&quot;conditions&quot;:{&quot;&quot;:true,&quot;-_exists_:snapshot.product.in_subscription&quot;:false,&quot;+snapshot.product.attributes.extended_trading_hours:true&quot;:false,&quot;+snapshot.product.in_subscription:(\\&quot;LEONTEQ\\&quot;)&quot;:false,&quot;+snapshot.product.secondary_market:true&quot;:false},&quot;barrierLevelRanges&quot;:[],&quot;assetClasses&quot;:[],&quot;currencies&quot;:[]}\">\n                <\/SavedSearch>\n  <\/div>\n\n<h3>Igniting the \u201cTurbo\u201d<\/h3>\n<p>Risk-conscious investors can also take a speculative approach using leveraged products. Leonteq\u2019s product range includes a wide variety of mini-futures, warrants, and knock-out warrants on Bayer, enabling disproportionate participation. Both long and short positioning are possible, meaning investors can bet on rising as well as falling prices. These leveraged products are traded either on SIX Structured Products or on BX Swiss.<\/p>\n\n<h3>Leveraged products on Bayer<\/h3>\n    <div>  \n        \n                                                                                                                                                                                                                                                                            \n            <leverage-saved-search :columns=\"[ 'engine.isin', 'engine.valor', 'Type', 'Direction', 'engine.underlying', 'engine.currency-abbr', 'Strike', 'Leverage', 'Ratio', 'engine.maturity', 'Bid', 'Ask']\" :filter=\"{&quot;underlyings&quot;:[&quot;67108927&quot;],&quot;marketVenues&quot;:[&quot;SIX&quot;],&quot;productTypes&quot;:[&quot;PT_WARRANT&quot;],&quot;conditions&quot;:{&quot;-identification.status:EXPIRED&quot;:true,&quot;+_exists_:price.ask +price.state:(\\&quot;OPEN\\&quot;, \\&quot;CLOSED\\&quot;)&quot;:false,&quot;+_exists_:levels.stopLossLevelAbs&quot;:false,&quot;+priceIndication.extendedTradingHours:true&quot;:false,&quot;+calendar.issueDateTime:[* TO now]&quot;:true},&quot;finalFixingDateMonths&quot;:[&quot;2026-09&quot;,&quot;2026-06&quot;,&quot;2026-12&quot;]}\" />\n  <\/div>\n    \n<div>\n    <ltq-button color=\"primary\" url=\"https://structuredproducts-ch.leonteq.com/leverage/Wwl?language_id=1\" label=\"Discover more leveraged products!\"><\/ltq-button><\/div>\n<div>      <p>We look forward to answering all of your questions about our products and how they are traded. Please don't hesitate to get in touch! Phone: <a href=\"tel:+41588001111\">058 800 11 11<\/a>, email <a href=\"mailto:info@leonteq.com\">info@leonteq.com<\/a> or <a href=\"/contact\" title=\"Contact\">contact us here<\/a>.\n<\/p>\n  <\/div>","url":"underlying-bayer26","investmentThemeVerticalImageUrl":"https://structuredproducts-ch.leonteq.com/product-news/sidenav-banner/bayer26_leonteq-structured-products_sidenav+banner.jpg","thumbnailUrl":"https://structuredproducts-ch.leonteq.com/product-news/thumbnail/bayer26_leonteq-structured-products_thumbnail.jpg"}
         