Deutz Stock Under Pressure! Buy Recommendations for Bayer and Partner MustGrow Biologics

MustGrow: Analysts Expect Sharply Rising Revenues and Earnings

GBC Research sees significant upside potential for MustGrow Biologics. In their latest update, analysts maintain their "Buy" recommendation for the Canadian AgTech company, which focuses on natural active ingredients derived from mustard seeds for agricultural use. The price target is CAD 2.51. The stock is currently trading at around CAD 0.42.

Analysts say the investment story rests on the growing commercialization of the biofertility product TerraSante™ and the development of the pre-registered biological crop protection product TerraMG™. The company is working closely with Bayer on the latter. In the first half of 2026, MustGrow already generated CAD 1.36 million in milestone revenue from the Bayer partnership. Additional milestone payments and future licensing fees could follow.

TerraSante™ is now approved for sale in thirteen US states. In late May 2026 alone, three additional agricultural markets—Texas, Utah, and Montana—were added. MustGrow has thus laid the foundation for further growth.

Although MustGrow Biologics' growth is currently proceeding more slowly than originally hoped, the reason for this is entirely positive. Demand currently exceeds available production capacity. Contract manufacturers in Asia are not ramping up their facilities fast enough. However, this should change in the coming months and boost growth. By mid-August 2026, MustGrow had already generated approximately CAD 0.90 million in revenue with TerraSante™, exceeding total 2025 revenue by 46%. A large portion of sales came from existing customers, indicating strong product acceptance. According to the company, at full capacity, the existing production facilities could generate annual revenue of CAD 15 million to CAD 25 million.

Analysts expect MustGrow to generate revenue of CAD 3.50 million in the current year. Next year, revenue is projected to reach CAD 14.05 million, and in 2028, CAD 31.56 million. For 2028, analysts forecast positive EBITDA of CAD 8.46 million. Earnings per share are projected to reach CAD 0.11. At the current share price of CAD 0.42, the market capitalization stands at around CAD 29.58 million. This is too low, according to GBC Research.

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Bayer Invests Billions

While MustGrow has begun commercialization in the US, its partner, Bayer, is also expanding there. The Leverkusen-based company has announced plans to expand its US presence with a billion-dollar investment. The pharmaceutical and agrochemical group plans to invest USD 2.2 billion in a new production facility in New Albany, Ohio. Bayer is thus continuing its expansion strategy in the world's largest pharmaceutical market. Over the past five years alone, the company has invested more than USD 7 billion in pharmaceutical research, development, and production in the US. The new facility is expected to create approximately 600 highly skilled jobs. During the construction phase, Bayer anticipates employing an additional 1,500 workers.

The new production complex will be equipped with modern digital technologies and a high degree of automation. The plan is to manufacture active pharmaceutical ingredients and finished pharmaceutical products, particularly for the treatment of cancer, cardiovascular diseases, and kidney diseases. The first production facility for active pharmaceutical ingredients is scheduled to begin operations in 2031, and a second facility for finished pharmaceutical products is planned for 2034. With this expansion, Bayer aims to strengthen its supply chains and meet the rising demand for medications in the US and other markets.

Bayer's stock has slipped from EUR 50 to EUR 43 in recent days. Nevertheless, the year-to-date gain in 2026 stands at 14%, and over the past year, it has reached 58%. Most recently, analysts at JPMorgan have expressed a positive outlook. They recommend an "Overweight" rating on Bayer stock, with a price target of EUR 61.

Deutz: What Is Going On?

In recent months, Deutz has emerged as a new investor favourite in the defence sector. Since the end of June, the stock has at one point more than doubled. But recently, it has come under significant pressure. In a few weeks, it lost about 20% of its value and is now trading below EUR 11. While a correction is certainly healthy, there are also specific reasons for the sell-off.

One trigger was the capital increase in mid-September. Deutz placed about 15.3 million new shares at EUR 11.70, raising about EUR 179 million. The placement discount and the dilution weighed on the share price. Added to this is the ongoing weakness in the traditional engine business. In particular, demand for smaller agricultural machinery engines is sluggish. According to media reports, Deutz is therefore planning further job cuts at its Cologne headquarters. By the end of 2028, it could eliminate about 200 to 300 jobs. These issues in the traditional business are dampening enthusiasm for the expansion of defence activities.

Analysts, however, remain largely optimistic. As recently as October 7, Berenberg raised its price target for Deutz shares from EUR 13 to EUR 16.50 and reaffirmed its "Buy" recommendation. In particular, the acquisition of the Flensburg-based vehicle manufacturer FFG is expected to strengthen the military applications business and lead to higher margins in the medium term. Warburg Research is even more optimistic, with a price target of EUR 19.

There is currently no reason to panic about Deutz. However, the Cologne-based company cannot afford any major missteps as it expands its defence business. According to analysts, MustGrow is on the cusp of a major growth phase. The stock has yet to reflect this potential. MustGrow's partner, Bayer, meanwhile, is currently making headlines primarily in the pharmaceutical business. Analysts also see potential in the Leverkusen-based company's stock.