Accor Shares Jump 2.59% Following Analyst Upgrades
Accor's stock is seeing a rebound this Wednesday, March 4, with a 2.59% increase to 44.70 euros, after shedding more than 7% over the past seven days. This recovery comes amid upgrades by two analysis firms, while the stock is still significantly below its moving averages.
Support from Analysts' Notes
Two analysts' notes published this Wednesday are bolstering Accor's stock. Kepler Cheuvreux has upgraded its recommendation from 'hold' to 'buy', indicating a strengthened conviction in the potential of the hotel group. Meanwhile, Citi has maintained its buy rating while raising its price target from 52 to 58 euros, representing a potential increase of about 30% from the current level. These concurrent initiatives provide a positive signal as the stock has lost over 8% over the past year and shows a decline of 4.5% over three months.
Technical Situation Remains Fragile
While today's rise eases selling pressure, Accor's technical situation remains fragile. The price is significantly below its 50-day moving average, which stands at 47.52 euros, indicating an ongoing downward trend. The RSI, an indicator measuring overbought or oversold conditions, is at 27, a level usually associated with a pronounced oversold zone. This extreme positioning partly explains the bullish reaction observed this morning, though it does not alone signal a lasting reversal. Additionally, the nearest support threshold is at 43.32 euros, a level tested during recent pullback sessions. Significant resistance, on the other hand, is located at 49.78 euros, a threshold that the stock should reclaim to validate a real change in dynamics. The gap between the current price and these key levels illustrates the extent of the journey needed to reverse the recent deterioration.
