Suedzucker Mannheim Ochsenfurt, first European producer of sugar, is currently testing the EUR 25.7 support and may bounce towards EUR 28.

Fundamentally, the group is undervalued in comparison with its peers, showed by a PER of 11x estimated for 2013 and a "EV/revenue" ratio of 0.76x. Furthermore, sales estimates have significantly been revised upward by analysts from Thomson Reuters which means an encouraging growth for the future.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the EUR 25.7 area should stop this downtrend and allow a technical rebound towards EUR 28. Moreover, technical indicators show a significant oversold situation which strengthens this bullish scenario.

Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in Suedzucker Mannheim Ochsenfurt in order to benefit from the EUR 25.7 support area. A first target price will be the EUR 28 resistance, ie a potential of 6.7%. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of EUR 28 would validate a bullish trend in order to aim a higher target price.