Medincell Share: Laggard of the SBF 120, down nearly 4% following FDA surge
The Montpellier-based biopharmaceutical company is marking a clear pause this Monday, after the rally triggered Friday by FDA approval. The decline occurs as the share remains well above its moving averages and two brokerage firms have just raised their price targets.
A decline that erases only a fraction of the rebound gained since the start of the month
Medincell shares fell 3.79% to €27.96 in trading, making it the largest decline on the SBF 120, while the index rose 0.14%. The move comes after a week up 25.95%, so today's pullback only takes back a small portion of the weekly gain. The price remains 18.83% above its 20-day moving average (€23.53) and 12.70% above its 200-day moving average (€24.81).
The RSI at 69 signals a configuration close to overbought following this surge. On Friday, the company announced that its partner Teva had obtained FDA approval for a monthly injectable formulation of olanzapine, with up to $112 million in milestone payments at stake.
Stifel and Portzamparc raise their price targets to €38.50 and €33.10
Two brokerage firms revised their targets upward this Monday. Stifel moved from €36.50 to €38.50 and remains on a buy rating, representing potential upside of nearly 38% from current levels. Portzamparc raised its target from €31.40 to €33.10, also on a buy rating, leaving approximately 18% upside to the current level.
Both targets are positioned above the resistance level at €29.06, the level of the last close. According to the consensus of tracked analysts, the share trades at 66.6 times the expected earnings for the following fiscal year.
