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Bayer opening unch. to start this week after an uneventful move to last weeks earnings.

HEALTHCARE
  • Despite coming out with strong Q4 beat/deleveraging its still struggling to price tight to VTRS - a dynamic that's even more exaggerated in the $ space (trades ~40+ wide).
  • No rating action since, we don't expect any from Moody's. Roundup updates expected to be catalyst going forward, given deleveraging done for now.
  • We saw the no-breakup as well anticipated helped by CEO headlines preceding the earnings - but still seemed to disappoint some analyst - may have been expecting changes further down the track (its guiding to no structural changes for at least next 2-3yrs).
  • FT cited the CEO last week dismissing speculation around any new share issue - "we don't think we need a capital raise and we have no plans". It has ~€3.8b in debt due this yr with plenty of headroom to pay it down - €5.9b in cash & expected €2-3b in FCF this yr.

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