We are upgrading Bayer AG (BAYRY) to Outperform from Neutral based on the strong results posted by the company in the third quarter of 2010. All segments performed well in the quarter.
The company earned EUR0.95 (approx. $1.22) in the quarter as against EUR0.78 (approx. $1.00) in the year-ago period. The Material Science segment performed impressively with sales climbing 30.8% due to improved sales of high-tech materials.
In addition, Bayer maintained its positive outlook for 2010. Earnings are expected to improve by more than 15% for 2010. Given the positive outlook, we have upped our earnings estimates for 2010 and 2011 by $0.37 and $0.39 respectively.
BAYER A G -ADR (BAYRY): Free Stock Analysis Report
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