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January 25th, 2023 | 13:54 CET

Bayer shares soon to reach triple digits? Barrick Gold and Desert Gold praised by analysts

  • Mining
  • Gold
  • Copper
  • chemicals
Photo credits: Bayer AG

Will Bayer be broken up, or will triple-digit share prices beckon? According to media reports, more and more investors are calling for the former. Most recently, Bluebell Capital Partners. According to the Bloomberg news agency, the British investor is calling on the DAX-listed Company to separate its Crop Science and Pharmaceuticals divisions. This could lead to a 70% increase in value for shareholders. Analysts also see considerable share price potential and believe that triple-digit prices are possible. Gold is also shining again. However, this has yet to be realized by exploration companies in particular. Experts see the chance of a revaluation at Desert Gold, for example - through takeover fantasy and drilling results. Besides B2Gold, Barrick Gold also comes into question as a buyer. The industry leader is also recommended as a buy, despite weakening Q4 results.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: BAYER AG NA O.N. | DE000BAY0017 , BARRICK GOLD CORP. | CA0679011084 , DESERT GOLD VENTURES | CA25039N4084

Table of contents:


    Ryan Jackson, CEO, Newlox Gold Ventures Corp.
    "[...] We quickly learned that the tailings are high-grade, often as high as 20 grams of gold per tonne; because they are produced by artisanal miners, local miners who use outdated technology for gold production. [...]" Ryan Jackson, CEO, Newlox Gold Ventures Corp.

    Full interview

     

    Desert Gold: Do drilling results and takeover fantasy provide for revaluation?

    The share of Desert Gold can only go up. The gold price is rising, the sales for tax reasons at the end of the year (so-called "tax-loss season") are over, and the capital increase to continue an extensive drilling program has been placed. In addition, there is takeover fantasy. Therefore, a quick revaluation is anything but unlikely. This is the conclusion of the experts at researchanalyst.com in their analysis update on the Canadian gold explorer with an exciting project in Mali.

    In the coming months, Desert Gold wants to prove that a mining operation on the 440 sq km SMSZ project promises high economic success. For this purpose, a drilling program of 35,000 meters will be continued in the current year. Of this, 10,000 meters will be used exclusively for resource delineation. With the SMSZ project in Mali, Desert Gold owns one of the largest non-producing land areas in West Africa, with 440 sq km. Several producing mines are located in the neighbourhood, including those of Barrick Gold, Allied Gold, Endeavour Mining, and B2Gold. If the upcoming drill results are again positive, this could lead to the takeover.

    B2Gold recently announced the takeover of its neighbouring competitor Oklo Resources. The decisive factor was likely the proximity to B2Gold's Fekola open pit mine. Barrick Gold also operates two mines in the region. Therefore, researchanalyst.com assumes that the shares of Desert Gold should wake up from their slumber in 2023 in the event of positive news (read the full study).

    Barrick Gold: Jumping on the takeover carousel after all?

    In addition to B2Gold, Barrick Gold could also be considered a future buyer of Desert Gold. However, the industry heavyweight had communicated last year that it would currently concentrate on the development of its own projects in the gold division. The focus is on the Reko Diq project in Pakistan. Production in one of the world's largest undeveloped copper-gold projects is expected to start in 2028. But should the takeover merry-go-round in the gold sector spin faster in the coming months, Barrick could also find itself under pressure to secure resources and maintain its leading position. After all, the Company certainly wants to retain its status as the industry leader, so vain is its management. In any case, the financial possibilities for takeovers are there: The debt has been significantly reduced in recent years, and operationally things are running smoothly, even if, despite an increase in production in Q4, it could not quite reach the planned gold production volume.

    According to preliminary figures, Barrick produced 4.14 million ounces of gold for the full year - 1% less than forecast. Copper production of 440 million tons was within the forecast range of 420 to 470 million tons. Bank of Montreal (BMO) had expected slightly more. Nevertheless, analysts continue to recommend Barrick shares with "Outperform". The price target is USD 23. Currently, the security is quoted at just over USD 19.

    Bayer: Price target EUR 99

    More than 50% price potential is currently attributed to Bayer shares. Both analysts and investors. Activist investors and hedge funds, in particular, seem to have discovered the Bayer share for themselves in 2023. There are repeated rumours of separating the Crop Science and Pharmaceuticals divisions. The rumours are fueled, among other things, by the entry of US investor Inclusive Capital into the group from Leverkusen. According to Bloomberg, Bluebell Capital Partners has also brought the IPO of the Consumer Health division into play. This could generate a 70% increase in value for shareholders. Yesterday, Bernstein Research again recommended Bayer shares with "Outperform". The price target is EUR 94. The stock is currently trading at EUR 55.58. UBS is even more optimistic. The analysts of the major Swiss bank recommend Bayer as a buy with a price target of EUR 99. A split is currently not yet being played out by any analyst.


    At Bayer, the year is starting off as anything but boring. But perhaps triple-digit prices really do beckon soon. Desert Gold is likely to be revalued if the drill results are positive. Barrick Gold is simply a fundamental investment in the gold sector. It should not be forgotten that the Company is also increasingly focusing on copper.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



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