Bayer Has Path Toward Better Cash Generation

Dow Jones11-04 19:42

1142 GMT - Bayer's legal battles have hit the company's cash flows in recent years, but the group has a path to better cash generation ahead that could aid its debt-reduction efforts, analysts at Bank of America say in a research note. With litigation mostly resolved, the cash-flow outlook for the German group and the growth prospects for its pharmaceutical business could draw investors' attention, the analysts say. Bayer's guidance for 2027 will be a key focus, they add. Bank of America sees potential for Bayer to generate between 3 billion and 5 billion euros in free cash flow over the medium term. Shares rise 2.9%.

 

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