AFX.DE Stock Today: January 21 Goldman Cut Sends Shares to 2017 Lows
Carl Zeiss Meditec stock slumped after a Goldman Sachs downgrade to Neutral and a price target cut to €42, pushing shares to multi‑year lows. The stock AFX.DE last traded at €35.04, down 6.61%, with volume slightly above average. The price now sits about 16% below the 50‑day (€41.71) and 28% under the 200‑day (€48.46). With Q1 flagged as weak and MDAX weakness in focus, investors weigh a 1.69% dividend yield and a 23.2x P/E against sliding momentum ahead of earnings on 12 February 2026.
What changed today
Goldman Sachs cut Carl Zeiss Meditec to Neutral and slashed the price target to €42, citing a weak Q1 setup and slower recovery visibility. The call pressured sentiment and accelerated the downtrend, taking shares to their lowest levels since 2017. Details of the downgrade were reported in German press coverage source.
The stock fell 6.61% to €35.04, with intraday trading between €34.70 and €36.00. Turnover reached 173,282 shares versus a 167,384 average, showing active selling. The drop briefly tested a five‑year low, consistent with local market headlines source. The decline leaves the price far below long‑term averages, keeping momentum negative despite occasional rebounds.
Valuation and fundamentals
At today’s close, Carl Zeiss Meditec stock trades at 23.18x TTM earnings and 1.39x sales, with EV/Sales of 1.65x. Free cash flow yield stands near 4.64%, while the dividend yield is about 1.69% on a €0.60 payout. EV/EBITDA is roughly 10.24x, suggesting a mid‑teens implied return profile if margins stabilize and cash conversion holds.
Gross margin is 65.76% and operating margin 13.24%, reflecting solid product economics, though recent growth metrics weakened year over year. ROE is 6.78% and ROIC 7.84%. Liquidity appears sound with a 2.35x current ratio. Leverage is moderate at 0.29x debt‑to‑equity, and interest coverage of 7.39x offers headroom if demand softness extends into Q1.
Technical picture
The price sits well below key moving averages: about 16% under the 50‑day (€41.71) and 28% below the 200‑day (€48.46). This alignment signals a persistent downtrend. RSI near 56 is neutral, but the negative MACD and a firm ADX around 27 indicate trend strength remains with sellers, limiting the odds of durable rallies.
Today’s low at €34.70 undercut the 52‑week trough of €34.72, creating a fragile support zone around €34.70–€35. A sustained reclaim of €38–€39 would be the first constructive sign, with heavier resistance near €41–€42. Average True Range of €1.43 implies roughly 4% daily swings, so position sizing matters.
What to watch next
Management reports on 12 February 2026. We will focus on Q1 order trends, cataract and refractive procedure volumes, pricing, and inventory normalization at clinics. Any commentary on margin drivers and cash conversion could reset expectations. A clear timeline for growth reacceleration would be a key catalyst for Carl Zeiss Meditec stock.
Broader MDAX sentiment remains soft, which can amplify single‑stock moves. If risk appetite improves in Germany, high‑quality healthcare names often lead rebounds. Conversely, if macro or hospital capex stays weak, multiple expansion may stall. Watch flows into German med‑tech peers and changes in consensus models post‑downgrade.
Final Thoughts
Today’s selloff pushed Carl Zeiss Meditec stock to multi‑year lows after a Goldman Sachs downgrade and a price target cut to €42. The price now trades well below key moving averages, placing momentum with the bears. Fundamentals remain serviceable, with strong gross margins, moderate leverage, and a 1.69% dividend yield, but growth and earnings trends softened in 2024. Near term, the 12 February earnings update is pivotal. We would track orders, margin levers, and any guidance reset. Technically, holding the €34.70–€35 zone and reclaiming €38–€39 would improve the picture. Until then, risk control and staged entries may suit investors seeking long‑term exposure to ophthalmic and microsurgery growth.
FAQs
Why did Carl Zeiss Meditec stock drop today?
A Goldman Sachs downgrade to Neutral and a price target cut to €42 weighed on sentiment, pushing the share price down 6.61% to €35.04. The move also reflected ongoing weakness in Q1 expectations and a broader MDAX risk‑off tone, which kept the stock below its key moving averages.
Is the Goldman Sachs downgrade a sell signal?
A downgrade is one data point, not a mandate. It highlights near‑term risks and weaker visibility. We weigh it against fundamentals: solid margins, moderate leverage, and cash generation. The setup likely stays tactical until earnings on 12 February clarify orders, margins, and the path to growth reacceleration.
What are the key technical levels to watch?
Support sits around €34.70–€35 after today’s undercut. On the upside, €38–€39 is the first hurdle, with heavier resistance near €41–€42. The stock trades about 16% below the 50‑day and 28% below the 200‑day, so sustained closes above those levels would improve momentum.
How is valuation after the drop?
The shares trade near 23x TTM earnings and 1.39x sales, with EV/EBITDA around 10x and a dividend yield of roughly 1.69%. That is not distressed, but cheaper than mid‑2024 levels. If growth stabilizes, upside exists. If Q1 disappoints, multiples could compress further.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
