33 percent protection: Bayer with a 12 percent chance

Despite the price losses of the past few days, Bayer shares lead the top/flop list of DAX stocks with a plus of 28 percent.

33 percent protection: Bayer with a 12 percent chance

Despite the price losses of the past few days, Bayer shares lead the top/flop list of DAX stocks with a plus of 28 percent. With bonus certificates with a cap, investors will also achieve high returns if the downward trend continues.

Just like the market as a whole, Bayer stock has come under a lot of pressure in recent weeks. Nevertheless, with a price increase of 28 percent since the beginning of 2022, the share leads the list of winners of all DAX stocks for this period.

Although the glyphosate lawsuit in the United States will continue to drag on, experts with price targets of up to EUR 96 (UBS) reiterated their buy recommendations for Bayer shares, as the chemical company's reserves are sufficient in the event of a possible conviction in the lawsuit should be.

The investment idea

After the recent sharp fall in price, now could be a good time to invest in Bayer stock, which is classified as slightly undervalued. However, if you want to significantly reduce the undoubtedly existing price risk of direct share purchases and still want to achieve a return in the double-digit percentage range, you could consider purchasing a bonus certificate with a cap as an alternative to buying shares.

Apart from dividend payments, the direct purchase of Bayer stock will only enable a positive return if the stock price rises. With bonus certificates with and without a cap, investors can achieve disproportionately high returns not only when the share price rises, but also when prices are stagnating or falling.

The way it works

If the Bayer share never touches or falls below the barrier of EUR 40 by the certificate's valuation date, the bonus certificate with cap will be repaid on June 23, 2023 with the maximum repayment amount of EUR 70.

The key data

The HVB bonus certificate with a cap (ISIN: DE000HB6QLV5) on Bayer shares has a bonus level and a cap of EUR 70. The cap defines the maximum payout amount of the certificate. The barrier activated until the valuation date, June 16, 2023, is 40 euros. With Bayer shares priced at EUR 59.78, investors were able to purchase the certificate for EUR 62.41.

The chance

As the certificate can currently be bought at 62.41 euros, it enables a gross return of 12.16 percent until June 2023 if the share price never falls by 33.09 percent to 40 euros or below by the valuation date.

The Risks

If the Bayer share price touches the EUR 40 barrier by the valuation date and the share is listed below the cap on the valuation date, investors will receive one Bayer share for each certificate in their custody account. If this share is sold below EUR 62.41, the purchase price of the certificate, then the investment will cause a capital 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 correctness of the data.

Yorum yapabilmek için üye girişi yapmanız gerekmektedir.

Üye değilseniz hemen üye olun veya giriş yapın.

NEXT NEWS