📉 Bayer shares are at a 20-year low!
German giant Bayer $BAYN.DE is under severe pressure - its shares have fallen to a 20-year low and the outlook for the next few years predicts a decline rather than growth. The cause is mainly the weak agricultural market, but also the company's internal problems, which CEO Bill Anderson is trying to address with a major restructuring. ✂️💼

Anderson, who recently took office, has started by cutting jobs, simplifying the company's structure and deciding not to separate the divisions for now. Bayer.

The company sees opportunities in launching new drugs such as Nubeqa for prostate cancer or Kerendia for kidney disease patients. But analysts point to the lack of clearly defined medium-term targets for earnings and sales. "Bayer's transformation needs to be accelerated and a concrete strategy put forward to restore confidence,". 🚀

Developments on the stock market only confirm that investors need more certainty. Bayershares are trading at 4.6 times projected earnings for the next 12 months, significantly less than competitors such as BASF $BAS.DE (12 times) or Corteva $CTVA (18.8 times). ⚖️

Another challenge is the ongoing problems due to the company's acquisition of Monsanto of the Monsanto 2018. This purchase for $63 billion, originally intended as a strategic move to strengthen the company's agrochemical business. Bayer long-term financial liabilities and costly litigation. Herbicide-related lawsuits Roundup, which is alleged to cause cancer, are still dragging on, placing both financial and reputational burdens on the company. 💸

Bayer is facing additional external pressures. For example, in USA cheaper generic versions of pesticides have been approved, forcing farmers to favour cheaper products and reducing demand for the original from Bayer. V EU in the EU, new environmental standards are being implemented, threatening some of the company's key insecticide products. 🌍

Despite the difficult environment and challenges, the company's management is optimistic. Anderson believes that despite the current mood, he has Bayer a strong future. The question remains, however, whether the company can regain the confidence of the market and investors, or whether the company will be out of business. 🤔

What is your opinion of Bayer? Does anyone own shares of this company?