FRANKFURT (dpa-AFX) - The shares of the medical technology group Drägerwerk should be kept in mind on Tuesday after the publication of key data for 2023 and the announcement of a dividend increase. Shortly after the start of trading, the shares were down around one percent at 51.80 euros.

The company, which is listed in the second-line index SDax, intends to increase its dividend substantially following a significant increase in sales and earnings. Around 30 percent of the surplus is to be distributed. The final proposal will be made when the final business figures for 2023 are presented, which is scheduled for March 7.

According to a trader, the preliminary figures for 2023 were surprisingly good, as was the announced dividend increase. However, the company only raised its annual targets in December. Meanwhile, the expert criticized the business outlook for 2024, saying that even if it could be considered conservative, the forecast for the operating profit margin was disappointing.

Drägerwerk is targeting a currency-adjusted increase in net sales of 1.0 to 5.0 percent for the current year. The earnings margin before interest and taxes (EBIT margin) should be between 2.5 and 5.5 percent. According to the company, last year's growth and profitability were supported by catch-up effects as a result of the improvement in the previously limited delivery capacity. The wave of demand for ventilators in China at the beginning of last year also had a positive impact on sales and earnings. These effects are now lacking in the current financial year, the company said.

The trader therefore believes it is possible that short-term investors will initially cash in during the course of the day after the recent price gains.

The 50-day and 21-day lines as indicators of the short to medium-term trend, both of which are still pointing slightly upwards, could then also come into view. They are currently at EUR 51.68 and EUR 51.13 respectively.

The share price only jumped above these averages on Friday after analyst Christian Ehmann from Warburg Research upgraded the shares from "hold" to "buy" and raised the target price from EUR 57 to EUR 62. In this context, he referred to the Group's increase in its annual targets for 2023 in mid-December.

As a result of the buy recommendation, the share price rose by 3.4 percent on Friday, opening up a gap in the chart above Thursday's high of EUR 51.20. This mark is also coming into focus, as are the 50- and 21-day lines./mis/tih/stk