Aperam Shares Dip by 2.5% Breaking Below its 20-Day Moving Average

Morgan Stanley Lowers Its Rating but Increases Its Target on Aperam

On June 16, Morgan Stanley downgraded its rating on Aperam from 'overweight' to 'market-weight' while raising its price target from 48€ to 52€. The new target implies a potential upside of about 6.3% from the current price of 48.90€, but the shift to a neutral stance removes explicit buying support. This change in the broker's opinion follows an exceptional stock performance, with the stock still up nearly 46% over three months and 80% over a year. The steelmaker is among the biggest losers in the SBF 120 on Wednesday, while the index remains flat.

The Stock Falls Below its MA20 but Maintains a Wide Cushion Over the MA200

The price has fallen below the 20-day moving average, which is at 50.98€, with a negative gap of 4.08%. This break extends the pause that began at the start of the month, following repeated failures at the 53€ resistance level. The 50-day moving average at 46.59€ remains 4.96% below the current price and serves as the next technical reference in case of further decline, with the identified support a notch lower at 45.84€.

The RSI at 54 remains neutral and does not indicate any immediate pressure, while the 200-day moving average at 37.03€ highlights the extent of the rally, with the stock still trading 32% above it. The easing in Brent prices (-4.27% in session) marginally reduces the energy costs for the sector, without being a driving factor for the day.