Virbac Shares Dip 2% at Midday Following Profit-Taking
The share price of the Paris-listed veterinary laboratory drops 2.02% this Thursday, December 18, to €339.50 at midday, after closing at €346.50 the previous day. This correction follows a favorable session driven by the announcement of the acquisition of distribution rights for a feline hyperthyroidism treatment for €114 million. Capital turnover remains very low at 0.02%, illustrating structurally limited liquidity in this case.
Recent Performance and Technical Levels
Following a 2.07% gain on December 16, the share price has fallen back to €339.50, partially erasing the gains from the previous session. Over seven days, the stock still shows a slight increase of 0.15%, indicating stabilization around current levels. Over three months, the performance is at 9.34%, with an annual gain of 8.12%, slightly outperforming the CAC 40, which has risen 7.88% over the same period. The identified support is at €338, while resistance is at €369, a significant gap of €31 indicating a high fluctuation range. Moving averages confirm a weakened technical position: the price is now below the 50-day moving average set at €347.26, breaking the upward trend observed in October and November. The 200-day moving average, at €327.43, now serves as a critical technical threshold to watch. The one-month volatility stands at 6.19, a moderate level reflecting contained variation amplitude despite recent movements.
Recent Acquisition Boosts Previous Session
The day before, the stock was bolstered by the announcement of the acquisition for €114 million of the distribution rights for Thyronorm, a medication stabilizing feline hyperthyroidism, a condition affecting 10% of cats. The animal health laboratory will now handle direct distribution of this treatment under the Thyronorm brand in the UK, Australia, and New Zealand, and under the commercial name Felanorm in the USA. Oddo BHF noted that the revenue from this treatment is around €27 million. Virbac indicated that this product has significant development potential, and Oddo BHF estimates that its EBITA margin should be close to 30%, with revenues expected to grow, particularly in the USA. Oddo BHF views the transaction positively and has reaffirmed its Outperform rating on Virbac shares, with a price target of €409, representing a nearly 20% upside from current levels. This recommendation follows a target increase from €395 to €409 in early November, while Jefferies also adjusted its target to €368 in October after the third-quarter release.
Technical Indicators Suggest Potential Rebound
The Relative Strength Index (RSI) stands at 24, a level clearly in the oversold zone suggesting excessive selling pressure. This technical signal generally indicates a potential short-term rebound as investors have heavily liquidated their positions. The MACD shows negative signals with a line at -3.22, a signal line at -1.82, and a histogram at -1.41, confirming a bearish momentum recently initiated. The Chaikin Money Flow is at -0.13, indicating slight but present selling pressure on volumes. The Bollinger Bands position the price between €333.01 at the bottom and €371.74 at the top, placing the stock near the lower boundary. This setup illustrates a return to the lower levels of the fluctuation range. The beta coefficient, particularly low at 0.05, confirms that the stock has a very low correlation with market movements, evolving according to its own dynamics, dictated by its operational fundamentals and specific strategic announcements.
