Bayer share with 16 percent opportunity
In contrast to the DAX, Bayer shares have recently been under heavy pressure. With bonus certificates with a cap, investors can generate high returns even if Bayer shares fall even further.
In contrast to the DAX, which rushed from one all-time high to the next, Bayer shares have been on a downward trajectory since spring 2023. While the shares were still trading above EUR 60 in April 2023, they recorded an annual low of EUR 30.22 on November 29, 2023, from which they were only able to recover slightly.
Despite the prospect of a dividend cut, the majority of experts reiterated their hold recommendation for Bayer shares following the sharp drop in the share price in November.
The investment idea
At EUR 32.30, Bayer shares are currently trading at their lowest level for more than ten years. Investors who are interested in investing in Bayer shares, which are classified as slightly undervalued, at this price level and who would like to significantly reduce the risk of buying shares directly and still achieve high returns could consider investing in a bonus certificate with a cap and a very high safety buffer.
Apart from dividend payments, private investors can only achieve positive returns when buying shares directly if the share price rises. Compared to buying shares directly, bonus certificates with and without a cap offer investors opportunities for annual returns in the double-digit percentage range not only if the share price rises, but also if prices stagnate or fall.
How it works
If Bayer shares never touch or fall below the barrier of EUR 20 by the valuation date of the certificate, the bonus certificate will be redeemed on December 30, 2024 at the bonus level of EUR 39.
The key data
The HSBC bonus certificate with cap (ISIN: DE000HS3J4Z8) on Bayer shares has a bonus level and cap at EUR 39. The cap defines the maximum redemption amount of the certificate. The barrier activated until the valuation date, December 20, 2024, is EUR 20. At the Bayer share price of 32.30 euros, investors could buy the certificate at 33.48 euros.
The opportunities
As the certificate is currently available at EUR 33.48, it offers a gross return of 16.49% in one year if the share price never falls by 38.08% to EUR 20 or below by the valuation date.
The risks
If Bayer shares touch the barrier at EUR 20 and the share price is below the cap on the valuation date, the certificate will be redeemed at the closing price of the share determined on the valuation date. If this is determined to be below EUR 33.48, the certificate investment will result in a loss.
This article does not constitute a recommendation to buy or sell Bayer shares or investment products based on Bayer shares. No liability is assumed for the accuracy of the data.
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- An investment advisor might suggest considering a bonus certificate with a cap on Bayer shares, as they currently trade at a low price and offer a potential return of 16.49% if the share price remains above the barrier by the certificate's valuation date.
- If an investor is interested in Bayer's assets, they could look into the HSBC bonus certificate with cap (ISIN: DE000HS3J4Z8), which has a bonus level and cap of EUR 39, allowing for high returns if the share price does not fall below EUR 20 prior to the valuation date.
- Consumers who are interested in the DAX and want to diversify their investment portfolio could consider investing in Bayer shares, as the company's shares have been under pressure lately but offer potential for high returns with the use of bonus certificates with a cap.
Source: www.ntv.de
