Eurofins Scientific Shares Bounce 2.8% Midday After Bernstein Upgrade
Shares of laboratory analysis specialist Eurofins Scientific climbed 2.8% on Thursday, December 18, reaching €60.92 from €59.26 the previous day. This rebound follows Bernstein's target price increase from €71.20 to €72.30, while maintaining an 'outperform' rating. Over the week, the stock now shows a gain of 6.02%, though it has slightly declined by 2.96% over three months. Capital turnover remains modest with only 0.04% of shares traded since the opening, indicating a still cautious investor dynamic.
Technical Rebound Amidst a Volatile Autumn
The December 18 session is part of a technical rebound following a volatile autumn marked by mixed quarterly results. The stock had risen 1.65% the previous day to €59.26 and continues its upward movement on Thursday with a midday gain of 2.8%. Over the year, Eurofins has shown a solid performance of 28.5%, reflecting a resurgence of investor confidence despite autumn disappointments. Bernstein's target raise comes in a context where the group had confirmed its 2025 targets at the end of October, despite an unfavorable exchange rate environment and a slowdown in organic growth in the third quarter. The price is now above its 200-day moving average of €59.12, indicating an underlying positive trend. The resistance threshold of €59.50 has been crossed, paving the way for a new technical level, while the support at €56.74 provides a considerable safety margin.
Technical Analysis Indicates Recovery Phase
Technical analysis reveals a stock in a recovery phase after several weeks of consolidation. The RSI stands at 50, a neutral zone allowing for the continuation of the upward movement initiated this week without risk of overheating. This indicator, which measures the relative strength of the stock, signals a healthy balance between buyers and sellers, enabling sustainable progress. The MACD shows an encouraging setup with a positive histogram at 0.12, confirming a trend reversal after several challenging sessions in November. This bullish crossover of the MACD line above its signal line suggests a potential acceleration of the movement. Monthly volatility remains contained at 4.43, while the price moves between the lower Bollinger band at €56.67 and the upper band at €59.94. The negative beta coefficient of -0.12 confirms the stock's independence from general movements of the Paris market, an advantage in times of uncertainty.
Food & Feed and Environmental Testing Drive Business Dynamics
The Food & Feed and Environment Testing activities in Europe and North America are driving the business dynamics, offsetting the persistent weakness of the BioPharma segment. Analyst consensus estimates earnings per share of €3.46 in 2025 and €3.90 in 2026, while revenue is expected to reach €7.3 billion this year. The group has warned that maintaining the current USD/EUR exchange rate would result in a negative impact of about 1.6% on reported revenue and a 20 basis point reduction in Ebitda margin. Organic growth for the third quarter was established at 4.1%, below market expectations of 4.4%, with a marked slowdown in the BioPharma division from 1.5% in the second quarter to just 0.4% in the third. These factors weighed on the stock in October and November, explaining the three-month decline of 2.96%. Bernstein's revised target of €72.30 now offers a potential upside of nearly 19% from the current price.
