Stifel downgrades its recommendation on Bayer from 'buy' to 'hold', with a price target reduced from 68 to 42 euros, preferring to 'stay on the sidelines' despite upside potential for the stock, following a review of options for the German group.

The broker considers that a separation from consumer healthcare 'may create value, but is not a short-term solution for the strained balance sheet', and believes that a separation from agrochemicals would destroy value.

In conclusion, Stifel sees further downside potential for the consensus over the coming months, and estimates that EBITDA could decline by 11% in 2024, following a decline of around 20% last year.

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