SHORT SQUEEZE at Gerresheimer? Will Bayer and MustGrow soon grow together?

MustGrow: Will the stock take off in the current year?

Protecting the environment and earning money with one investment is possible with MustGrow. The company is still a hidden gem in the fast-growing market for organic agricultural solutions. But that is likely to change soon. COO Colin Bletsky made it clear in his presentation at the recent International Investment Forum that the company does not sell "just any" organic label, but is a fully integrated supplier that extracts natural active ingredients from mustard seeds. In other words, from a raw material that is familiar from the world of food. The key feature is that MustGrow isolates and concentrates the molecules known from wasabi or horseradish ("the kick in the nose") and transforms them into practical applications for farmers, with the aim of increasing yields, strengthening soil biology, and reducing the use of synthetic chemicals.

In the US, the product TerraSante (biofertility) is already approved in several states. It is also certified organic, so that it can be used in both organic and conventional farming. TerraSante acts as a "probiotic for the soil." It stimulates microbial activity, improves root development, and increases resilience to stress factors. In an interview with analysts from GBC Research, MustGrow CEO Corey Giasson recently estimated the sales potential of TerraSante in the US at USD 100 million. Click here for the interview..

According to COO Bletsky, MustGrow is at an exciting milestone in terms of operations. The company is currently making the transition from research to commercialization. Revenue is already being generated in Canada and parts of the US. In the third quarter of 2025, approximately CAD 7.4 million was generated. MustGrow was temporarily sold out in 2025. The company is valued at only around CAD 36 million on the stock market, which makes it anything but expensive.

Bletsky classified MustGrow as part of a huge global fertilizer and crop protection market with a volume of around USD 380 billion. MustGrow holds numerous patents and, with TerraMG, for example, addresses the highly attractive market for biological crop protection.

The partnership with Bayer Crop Science is particularly valuable from a strategic perspective. The Leverkusen-based company has licensed the technology for Europe, Africa, and the Middle East and, according to Bletsky, is investing tens of millions in registrations. He also held out the prospect of milestone payments. At the same time, the business model remains capital-light. Following the example of the semiconductor industry, MustGrow outsources production to specialists.

Overall, Bletsky left a very positive impression. There are many reasons to buy MustGrow shares.

https://youtu.be/XFGCBf1w8mg?si=R5FK2CGJh2gkzB4F

Bayer: Little growth in 2026

While MustGrow products are expected to generate revenue and profits for Bayer in the future, the company continues to struggle with its legacy issue of glyphosate. The prospect of the issue being resolved through a settlement caused the share price to rise sharply towards the end of last year. In mid-February, a sharp correction set in when it became clear that there was resistance to the settlement. The share price fell from almost EUR 50 to below EUR 38.

From mwb's perspective, the correction was likely too severe. Although the price target was reduced slightly following the publication of the preliminary figures for 2025, at EUR 52 (previously EUR 54), it remains well above the current price level.

From an analyst's perspective, Bayer is working hard to finally contain the "permanent stain" of glyphosate legal risks and thus increase visibility for investors. Central to this is a planned US-wide Roundup settlement, which has already received preliminary court approval. The opt-out period runs until June 4, 2026, followed by a fairness hearing scheduled for July 9, 2026. At the same time, the US Supreme Court is reviewing a key issue that is extremely relevant to Bayer's strategy. Namely, whether federal pesticide labeling law supersedes state "failure-to-warn" lawsuits. If this question is decided in Bayer's favor, it could significantly limit the future wave of lawsuits and clarify the legal framework for existing judgments.

Analysts expect Bayer's operations to stabilize in 2026. The group's sales forecast is between EUR 45 billion and EUR 47 billion. Adjusted EBITDA is expected to be between EUR 9.6 billion and EUR 10.1 billion. The pharmaceuticals division is expected to continue to be the growth driver. Among other things, the first full-year contributions from Beyonttra and Lynkuet, as well as further increases in revenue from Nubeqa and Kerendia, are expected to largely offset the patent expiries of the blockbusters Xarelto and Eylea. In the Crop Science segment, margins are expected to rise again in the coming years – perhaps the MustGrow license will also contribute to this.

Analysts see the problem in the short term with cash flow. Due to expected settlement-related payments of around EUR 5 billion, management forecasts a negative free cash flow of up to EUR -2.5 billion. This could increase net debt to EUR 32 to 33 billion. Analysts describe these payments as the "price" for greater predictability in the future, as they would improve operational execution, pipeline quality, and legal visibility.

Gerresheimer: Short squeeze on the way?

What is going on at Gerresheimer? While the stock markets are having to digest the Iran war and rising energy prices this week, the stock of the actual problem child on the German stock exchange has been rising sharply for several days. On Tuesday, the stock was still trading at around EUR 15.40. Yesterday, it was already at EUR 18.10.

Some short sellers are likely to be getting nervous. Although the stock had lost more than 30% of its value in the current year alone due to balance sheet problems and forecast adjustments, short sellers have recently even expanded their positions.

According to a publication in the Federal Gazette, AQR Capital Management, Capital Fund Management, Connor, Clark & Lunn Investment Management, Millennium International Management, and Numeric Investors, among others, had increased their holdings. These companies alone had shorted 7.39% of all Gerresheimer shares. Only AHL Partners reduced its position from 0.91% to 0.85%. If the share price continues to rise, a short squeeze could occur.

MustGrow could be one of the discoveries of 2026. If the transition to commercialization is successful, and it looks like it will be, this should give the stock a strong tailwind. Revenue could soon exceed the current market capitalization. Then the stock would be far too cheap. Or will Bayer buy the entire company? This cannot be ruled out either. With the license, the Leverkusen-based company is in pole position and can assess the potential very well. Bayer shares will likely benefit from a breather after its strong performance in 2025. Gerresheimer remains only for speculators.