The stock of the pharmaceuticals producer, Bayer, is well orienter to reach new historical highs.

The profitability of the company is expected to rise in 2013 with a net margin of 8.8% estimated for this year compared to 6.2% in 2012. The company is financially healthy with a leverage (net debt/EBITDA) of 0.85x in 2013 and 0.73x expected for this year. The firm is low valued with an EV/Sales 2013 ratio of 1.75x compared to more than 2x in average for the sector.

Graphically, the trend is bullish with well oriented moving averages. Prices are back on a bullish trend line, corresponding to the 100-day moving average. These two technical elements argue in favor of a comeback of the bullish trend, in the coming trading sessions, towards historical records, around EUR 86.6.

Thus, it seems interesting to take a long position at the current price in order to aim EUR 86.6. A stop loss must be placed below the 100-day moving average, at EUR 77.6.