Bayer Aktiengesellschaft (ETR:BAYN) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a pretty great week for Bayer Aktiengesellschaft (ETR:BAYN) shareholders, with its shares surging 13% to €29.94 in the week since its latest third-quarter results. It was a pretty bad result overall; while revenues were in line with expectations at €9.7b, statutory losses exploded to €0.98 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, Bayer's 18 analysts currently expect revenues in 2026 to be €46.1b, approximately in line with the last 12 months. Earnings are expected to improve, with Bayer forecast to report a statutory profit of €2.49 per share. In the lead-up to this report, the analysts had been modelling revenues of €46.2b and earnings per share (EPS) of €2.44 in 2026. So the consensus seems to have become somewhat more optimistic on Bayer's earnings potential following these results.

View our latest analysis for Bayer

The consensus price target was unchanged at €29.05, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Bayer, with the most bullish analyst valuing it at €39.00 and the most bearish at €23.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Bayer's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.5% growth on an annualised basis. This is compared to a historical growth rate of 2.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that Bayer is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Bayer's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Bayer analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Bayer , and understanding this should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.