Emeis Stock Surges 9.88%, Boosted by Strong Q3 Performance
Midday Wednesday, October 29, sees a significant rebound in the stock of the nursing home and clinic group, crossing the €15.79 mark with a nearly 10% gain. This surge follows the announcement of quarterly results that confirm the recovery trajectory since the group's rebranding to Emeis. Over the week, the stock has accumulated more than 14% in gains, reflecting growing market confidence in the dynamics of the elderly care and services sector.
Opening Session Performance
At the start of the session, Emeis is trading at €15.79, up 9.88% from the previous close of €14.37. This increase occurs in a stable stock market environment, with the CAC 40 gaining only 0.09 points in the same session, indicating a specific momentum for the stock. Capital turnover remains moderate with only 0.41% of shares traded, suggesting the rise is driven by consensus rather than massive volumes. Over a broader horizon, the performance becomes remarkable: the stock shows a gain of 14.09% over seven days, 23.84% over three months, and 175.50% over twelve months. This annual progression significantly outperforms the main Paris index, which only recorded an 8.82% increase over the same period. This performance gap reflects a gradual revaluation by investors towards the group, after several years marked by governance and confidence challenges.
Q3 Results Provide Momentum
The release of the third-quarter results on Tuesday, October 28, sets the stage for this acceleration. Emeis reported revenue of €1.48 billion over the past three months, representing organic growth of 7%. Over nine months, the group posted a total of €4.39 billion, up 6.4% on a like-for-like and constant currency basis. This growth is driven by three combined levers: a price effect of 3.8% supporting growth, an improvement in the average occupancy rate to 87.3% (up 1.8 percentage points from September 2024), and contributions from recently opened facilities in the Netherlands and Spain. The group also significantly exceeded its asset disposal target, with €2.1 billion in sales finalized or secured since mid-2022, against an initial target of €1.5 billion. This performance in debt reduction strengthens the credibility of the financial recovery strategy. Meanwhile, Emeis maintains its 2025 forecasts with expected EBITDAR to increase by 15 to 18% on a like-for-like basis, while the group targets average annual growth rates of 4 to 5% for revenue and 12 to 16% for EBITDAR through 2028.
Technical Outlook
Technically, the stock is now trading above its two main moving averages: the 50-day at €13.36 and the 200-day at €11.33. This setup positions Emeis in a bullish medium and long-term trend. Today, the stock crossed the resistance level at €15.51, potentially opening towards the upper Bollinger band set at €15.55. The Relative Strength Index stands at 48, remaining in a neutral zone, while the MACD displays a sell signal with its line (0.29) positioned below the signal line (0.43). The annualized volatility over one month is set at 12.61%, remaining moderate for a stock with such marked performance. The gap between the 50 and 200-day moving averages is €2.06, indicating a significant degree of separation typical of constructive consolidation phases.
