Bayer Earnings: Poor Results Weighed Down by Crop Science; In Line With Recently Lowered Guidance

Bayer reported poor second-quarter results largely as projected, and we don’t expect any major changes to Bayer’s fair value estimate. Following the recently announced lowered 2023 guidance in July, we were expecting weaker results. The return of competitive glyphosate production is causing headwinds to Bayer’s crop science business, especially in the herbicide group. We expect these headwinds to normalize toward the middle of 2024 as the business annualized the return of competition from China that was disrupted over a year ago.