FRANKFURT (dpa-AFX) - Supported by a buy recommendation for Carl Zeiss Meditec from the Swiss bank UBS, the shares of the medical technology company continued their recovery attempt from Friday at the beginning of the week. The share price rose by around 3.8 percent to 97.24 euros on Monday, which meant first place in a weakening MDax.

Carl Zeiss Meditec thus overcame the 21-day line again. This short-term trend indicator is still pointing upwards at 94.30 euros. However, the next, possibly more stubborn resistance is already lurking in the form of the 200-day line, which signals the longer-term trend, at just under EUR 98.

According to UBS analyst Graham Doyle, Carl Zeiss Meditec's sluggish growth will reach a positive turning point this year. He therefore raised the price target from 89 to 125 euros and upgraded the stock from "Neutral" to "Buy".

The Jena-based company offers one of the best growth stories in the sector. Nevertheless, the valuation premium of the share has recently fallen significantly compared to the sector, he wrote. Doyle expects Zeiss to achieve an average annual growth rate of 10 percent in sales and 18 percent in earnings per share (EPS) in the years 2024 to 2028.

There are several areas of upside potential, some of which - in view of the consensus sales forecast - are not yet seen by many analysts. In particular, the expert referred to the doubling of research and development expenditure and the opportunities in the USA, especially with regard to cataract lenses (for cataracts) and refractive lasers for correcting defective vision.

The UBS analyst also sees considerable potential for the medium-term development of earnings as a result of the acquisition of the ophthalmology specialist Dorc.

According to Doyle, the company's outlook for the current financial year 2024 signals that the low point in earnings development will be reached. This should also mark the end of the three-year decline in margins. Carl Zeiss Meditec is expected to announce the figures for the first quarter of the 2023/24 financial year on February 9./ck/mis/jha/