Sartorius Stedim Biotech Approaches Key Technical Threshold at €185
The French bioproduction equipment specialist continues its recovery at midday, with the SBF 120 index showing a strong upward trend. The stock extends its bullish sequence that started in mid-May and is nearing a closely watched technical threshold. Jefferies has also recently adjusted its price target slightly.
The Rebound Accelerates, Bringing the Stock Close to Its 200-Day Moving Average
Sartorius Stedim Biotech is up 2.63% at €179.30 at mid-session, bringing its weekly gain to 5.35%. The stock is performing better than the SBF 120 index, which is up 1.10%. This movement extends the momentum initiated last week, when the stock had crossed its 50-day moving average. Today's rise brings the price above the MM20 (€164.60) with a gap of nearly 9%, and above the MM50 (€168.32). However, the stock remains slightly below the MM200 at €185.30, a gap of -3.24%. This level, which serves as a barometer for the medium-term trend, has not been crossed for several months. The RSI at 58 indicates a buying momentum without entering an overbought zone, leaving room before the resistance identified at €188.70.
Consensus Targets €230 as Median
Jefferies raised its price target yesterday from €226 to €227 within a consensus median of €230, while maintaining a buy rating. Based on the analysts surveyed, the stock is trading at about 35.5 times earnings for the current fiscal year and 29.6 times those for the next fiscal year. This valuation reflects the expected growth profile in the bioproduction sector, following a challenging year with a 7% decline over twelve months. The next technical step involves crossing the MM200 at €185.30, which would pave the way towards the resistance at €188.70.
