Alstom Shares Drop 3.76% at Close Despite Securing €2.5 Billion in Contracts
Alstom's stock fell 3.76% to €25.86 on Tuesday, January 6th at market close, following the announcement of securing three contracts worth approximately €2.5 billion across the Americas and Europe, recorded in the third quarter of fiscal year 2025/26.
Market Reaction and Analyst Perspectives
Alstom experienced a 3.76% decrease to €25.86 this Tuesday, January 6, at closing, after announcing the previous day that it had secured three contracts totaling about €2.5 billion in the Americas and Europe, recorded in the third quarter of fiscal year 2025/26. The stock had surged nearly 4% on Monday, reaching a two-and-a-half-year high, before undergoing a correction. Kepler Cheuvreux has downgraded its recommendation from 'buy' to 'hold' while raising its price target to €27.50, whereas BNP Paribas maintains a 'neutral' recommendation with a revised target from €24 to €26. The traded volumes represent 0.24% of the capital, indicating moderate activity against a backdrop of profit-taking after the previous day's surge.
Technical Indicators and Market Sentiment
The RSI has reached 83, indicating an overbought zone that technically justifies the day's correction. However, the stock continues to trade above its 50-day moving average of €23.10, confirming a positive underlying momentum with a 20.67% increase over one year and 15.5% over three months. The key resistance now stands at €26.87, the previous day's closing level, while support is positioned at €21.49. Analyst consensus remains divided, with JP Morgan's optimism targeting €33.40 and the caution of Goldman Sachs and Barclays recommending sell with targets below €20. The monthly volatility of 8.03% reflects a stock in consolidation phase after a marked increase.
