Amplifon under pressure, weighs Antitrust investigation on hearing aids

Amplifon under pressure weighs Antitrust investigation on hearing aids

(Finance) – The stock is moving lower Amplifonwhich presents a decline of 2.06%, despite moving above the session lows.
The Antitrust “finding” investigation concluded on hearing aids and started in September 2023 contributes to weighing on the shares. According to the authority, in Italy, the average price for a single device “is higher and with less public support for the purchase “. The investigation finds a “lack of transparency of the commercial conditions applied to the public”.

For Jefferies analysts, the AGCM’s conclusions benefit the company, they are quite similar to those reached by the French competition authority (CA) in 2016. For this reason, the investment bank’s analysts believe that in Italy “the scenario remains valid of a reform similar to the French one, which would prove to be a positive catalyst for Amplifon in the coming years”.

The technical scenario seen in one week of the stock compared to the index FTSE MIBhighlights a slowdown in the trend of leading company in hearing solutions compared to main index of the Milan Stock Exchangeand this makes the stock a potential selling target for investors.

The medium-term structure remains positively connoted, while signs of contraction emerge due to the short-term approach forced to deal with the resistance identified at 32.94 Euros. The functional support role offered by 30.59 is still excellent. Overall, the general context could justify a continuation of the consolidation phase towards 29.35.

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