Bayer's Pharma Growth 'Underappreciated' Ahead of Expected Stroke Drug Approval, BofA Says

02:14 AM EST, 11/03/2026 (MT Newswires) -- BofA Global Research believes the growth outlook of Bayer's (BAYN.F) pharmaceutical business is "underappreciated" ahead of the expected US approval of asundexian in secondary stroke prevention. "We see limited downside to our cEur3bn peak (and to cons cEur2bn), even on milvexian success, given already reflected in our forecasts. Any milvexian slip up is upside to our estimates, possibly towards mid to high-sd Eurbn (which would reflect high-sd % upside to cons 33E group sales), dependent on exact milvexian data. Crucially, we believe outlook for Bayer's Pharma business is largely underappreciated. We forecast a mid-sd % 5yr Pharma sales CAGR ex-asundexian (driven by Nubeqa/Kerendia), which increases to c7% on cEur3bn asundexian peak sales. Upgrading our peak sales as high as cEur7bn (on best-case scenario, discussed below) could result in a c9-10 % sales CAGR for Pharma, with EBITDA growth likely ahead of sales on expected margin expansion (mid-teens %)," analysts said Monday. The research firm also noted that its buy thesis for the German life sciences company is underpinned by an expected return to "better underlying cash flow" as litigation clears. It points to full-year 2027 guidance as a "key focus," forecasting 3 billion euros to 5 billion euros in midterm free cash flow, compared with "low" free cash flow generation in recent years. On the earnings side, analysts' 2027 EPS forecast was lowered to 4.66 euros from 4.69 euros, while their 2028 assumption was raised to 5.39 euros from 5.33 euros. BofA has a price objective of 58 euros on the stock.