Sanofi, a pharmaceutical group, announced that 1Q business net income rose 15.9% on year to 2.04 billion euros and business operating income increased 15.8% to 2.66 billion euros on net sales of 8.97 billion euros, up 6.9% (+6.6% at constant exchange rates). The company said it continues to expect business EPS to grow around 5% at constant exchange rates (+15.6% in 1Q).
Global healthcare stocks have recently outperformed the STOXX 600 in Europe. From a technical point of view, Sanofi remains in a short term bullish trend, supported by a rising trend line. The daily Relative Strength Index (RSI, 14) is bullish and not overbought. The stock price is trading above its 50DMA which started to flatten out. This may indicate an imminent consolidation move for the stock as prices are approaching from Feb 19th high at 95E.
Immediate support is set 86.6E near the 100DMA but the key short term support threshold is set at 80.7E. A break above 95E would open the way to a further rise towards 99 (upper Bollinger boundary on a weekly chart).
Source: GAIN Capital, TradingView
