Deutsche Bank analyst Tim Race believes a takeover price for Monsanto (MON) below $140 per share is reasonable for Bayer (BAYRY). Monsanto closed yesterday up $4.47 to $105.99 after Bayer announced a $62B bid for the company. Accretion breakeven for Bayer is around $149-$158 per Monsanto share, the analyst tells investors in a research note.

Bayer’s offer for Monsanto has not been taken well by investors, Race argues. The analyst believes the financing structure as well as differences in opinion between management and investors on the strategic direction of Bayer have all contributed to the stock dropping 15% in the past two weeks.

Race sees value in the business, however, and believes “upside prevails” from current Bayer share levels. He lowered his price target for Bayer to EUR 124 from EUR 140 and keeps a Buy rating on the name.