The actions of Pharmamar They accumulate a fall of 15 percent so far this year and have been moving for several sessions on the edge of 60 euros, a psychological support that clearly loses this Monday, which could accelerate the falls.
The biopharmaceutical does not finish reacting on the stock market, despite the fact that large banks, such as Barclays, continue to trust the potential of Zepzelca, the company’s star drug.
The analysts consulted by finance.com explained that the group needs a double-digit rebound to remove the downward pressure, but the company rose again this Monday with a 3 percent decline and again losing 60 euros.
Symptoms of weakness in Pharmamar
“The price of Pharmamar continued to show signs of weakness: with the loss of 67-66.7 euros at the beginning of November,” he said. Jose Luis Herrera, Analyst at Global Investment Bank (BIG).
At the end of October, the president of the company, José María Fernández Sousa, acknowledged the setback of the final study of Aplidin, as it had advanced exclusively in Finanzas.com.
From these levels, the company’s price continued to plummet, after hopes for the drug against the coronavirus that drove the price in the first part of the year cooled. And the landscape has hardly changed.
The weakness “remains in the short term below 83.2 euros, while the price is approaching important support levels, between 50 and 52 euros, where in 2015 and 2017 it found resistance,” he added. Eduardo Faus, Renta 4 Banco analyst.
16 percent drop margin
The problem is yes Pharmamar loses the support of 60 euros, the margin of fall to 50 euros exceeds 16 percent. And it is not clear that everything is going to stay that way.
The price is moving in the lateral range defined by 63.3 and 60.5 euros so far this month, but it could break levels at any time.
“This laterality is breaking down in recent days, so the falls could continue in the short term,” he said. Herrera.
Bounce options for Pharmamar
However, it is not uncommon for lateral areas like the ones in which Pharmamar moves to bounce off supports. But for that, the sources consulted consider it imperative that the price recovers before 63.5 euros.
But it will not be easy, because the last time the price stepped on these lands was last October, before the sharp decline that knocked down Pharmamar after presentation of results.
The biopharmaceutical’s profit deflated to 11.7 million euros, after sales of Zepzelca, Yondelis and those of diagnostic tests for Covid-19 stagnated.
The only green shoots were debt, which remains stable at € 50 million, and free cash flow, which reached € 171 million.
In Herrera’s opinion, the appearance of Pharmamar it would improve as long as the share first exceeded 63.5 euros, and above all 67 euros.
The consensus of analysts continues to trust Pharmamar
However, the stock market tribulations of Pharmamar they did not cloud the optimism of the finance.com analyst consensus. Experts continue to see rebound potential for the 53 percent group.
Half of the experts who cover the company choose to hold, while 37 percent recommend buying, while 13 percent prefer to sell their shares.
With the fall of 16 percent that takes in the year, Pharmamar it is already the fifth worst value of the entire IBEX 35, only ahead of ACS, Grifols, Solaria and Siemens Gamesa, whose annual decreases are around 20 percent.