Bayer Kept at Buy as Mwb Notes 'Uneven' Q3, Faster-than-Expected Pharmaceuticals Recovery

06:58 AM EST, 11/03/2026 (MT Newswires) -- Mwb Research reiterated Bayer's (BAYN.F) buy rating following an "uneven" third quarter, with the company's pharmaceuticals division seeing a faster recovery than expected. "Bayer delivered a solid Q3 EBITDA beat, driven by Pharma's accelerating recovery, with Nubeqa and Kerendia increasingly offsetting patent erosion. Crop Science was weak, but its strong nine-month performance keeps the restructuring story intact. Management raised adj. EBITDA and FCF guidance, although unchanged core EPS expectations and soft underlying cash conversion take some shine off the upgrade," analysts said Tuesday, noting that the investment case looks "more balanced" now compared with six months ago. The German life sciences group recorded a 4.1% annual growth in sales to 10.05 billion euros in the quarter. Adjusted EBITDA jumped 6.9% to 1.62 billion euros, exceeding mwb's forecast of 1.5 billion euros, largely driven by a 23.6% surge in adjusted EBITDA at Bayer's pharmaceuticals division. "Pharma is becoming a more reliable earnings contributor, the balance-sheet outlook is better, and recent legal wins are easing concerns over litigation risk. That supports our BUY rating, although a sustained re-rating will require stronger cash generation and a more durable earnings recovery across all divisions," the research firm added, as it reaffirmed the stock's price target of 65 euros.