The holding company engaged in the healthcare has seen its shares increase after releasing higher than prior year earnings.

Sales increased of 10% and are expected to rise 7% for 2014. Margins are also expected to improve during the current year. Company’s leverage should decrease to 3x for 2014 and even lower to 2.7x for 2015, still giving the enterprise financial leeway for facing compromises without increasing default risk. Moreover, its low P/E ratio at 9.86x means an interesting entry point for investors. Consensus on the company remains globally buyer.

Graphically, the share shows a great recovery since the big fall recorded on March 24th session. Earnings release better than prior year are pushing prices up and the EUR 34 resistance should be tested soon. In daily data, level of 20-day moving average is close to the midterm resistance and thus it should represent a key point for the stock. Furthermore, according to RSI indicator the stock is oversold.

Considering fundamental and technical analysis, a long position could be taken at current prices (EUR 31.8). The target price being fixed at EUR 34, the stop-loss order would be placed at EUR 30.8.