Eurofins Scientific Shares Climb 1.65% Following Bernstein Upgrade
Eurofins Scientific, a specialist in laboratory analysis, saw its shares rise on Wednesday, December 17, mid-session, recording a gain of 1.65% to 59.26 euros from 58.30 euros the previous day. This performance comes as investment bank Bernstein raised its price target from 71.20 to 72.30 euros while maintaining its 'outperform' rating. Capital turnover remains limited with only 0.2% of shares traded since the opening.
Positive Weekly Momentum Despite Quarterly Dip
The December 17 session is part of a favorable weekly trend with a 4.44% increase, although the stock has fallen 5.4% over three months. Over a year, Eurofins has nevertheless shown a solid performance of 23.72%, reflecting a resurgence of investor confidence after autumn disappointments. Bernstein's price target increase 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 Food & Feed and Environment Testing activities in Europe and North America are driving the commercial dynamics, offsetting the persistent weakness in the BioPharma segment. The price is currently above its 200-session moving average established at 59.07 euros, indicating a fundamentally constructive trend over the past year.
Technical Analysis Indicates Consolidation Phase
Technical analysis reveals a stock in a consolidation phase after several weeks of volatility. The RSI is at 44, a neutral zone indicating neither overbuying nor overselling, allowing for the continuation of the upward movement started this week. The MACD shows an encouraging setup with a positive histogram at 0.02, suggesting a slight trend reversal after several challenging sessions. The price fluctuates between the lower Bollinger band at 56.60 euros and the upper band at 59.84 euros, with a contained monthly volatility of 4.16. Crossing the resistance threshold at 59.50 euros is immediately achievable and could pave the way to a new technical level, while the support at 56.74 euros provides a safety margin for investors. The negative beta coefficient of -0.13 once again confirms the stock's independence from the general movements of the Paris market.
Short-Term Outlook Marked by Currency Impact
While the consensus of analysts expects earnings per share of 3.46 euros in 2025 and 3.90 euros in 2026, the short-term outlook remains marked by the adverse impact of currency exchange rates. The group has warned that maintaining the current USD/EUR exchange rate would result in a negative effect of approximately 1.6% on reported revenue and a 20 basis point reduction on the 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, as evidenced by the 5.4% decline over three months.
