Bayer Crop shares get an upgrade from HSBC who says the worst is over

Shares of Bayer CropScience Ltd. are in focus on Thursday, November 27, after brokerage firm HSBC upgraded its rating on the stock.

It now has a "buy" rating on Bayer Crop from the previous "hold" rating, but has reduced its price target to ₹5,200 per share from the previous ₹5,500 apiece. The revised price target still implies a potential upside of 13.7% from its previous close of ₹4,575 apiece.

HSBC said it expects an improved performance for the company in the second half of the financial year 2026, with better industry dynamics and opportunities in the corn seeds business.

Bayer Crop's new product launches will support its growth and the finetuning of its distribution and sourcing strategies will help drive margin recovery, HSBC said.

The brokerage said it has upgraded the stock as it thinks the worst appears to be behind for the company. At 29 times financial year 2027 estimated Earnings Per Share (EPS), HSBC finds Bayer Crop's valuations to be attractive, as it is lower than the 10-year average multiple of 32 times.

Additional positive includes a strong Return on Invested Capital (RoIC) of 27% and an implied financial year 2027 dividend yield estimate of 2.9%, HSBC wrote in its note.

Of the nine analysts who have coverage on the stock, five have a "buy" rating and four have a "hold" rating. No analyst covering Bayer Crop has a "sell" rating on the stock.

Shares of Bayer Crop ended the previous session 0.7% lower at ₹4,575 apiece. The stock is down 10% in the last one month, 17% in 2025 so far, while its down 30% from its 52-week high of ₹6,511.

Also Read: Brigade Enterprises shares in focus as it leases 4,859 acre land to develop IT infra in Kerala for 90 years