Arkema's Stock Advances Against CAC 40 Trend, But Deutsche Bank Targets 17% Lower
On Thursday, the specialty chemicals company's stock rose by 1.34% to €60.35, bucking the trend of a CAC 40 that fell by 0.54% during the session. This increase extends a positive momentum that began in recent weeks, with a gain of more than 15% over three months. Deutsche Bank also revised its price target for the stock today.
Deutsche Bank Adjusts Price Target on Arkema
The German bank adjusted its price target on Arkema this Thursday, raising it from €49 to €50, while maintaining its 'hold' recommendation. This new target remains significantly lower than the current price of €60.35, implying a potential downside of about 17% according to Deutsche Bank's analysis. This cautious stance contrasts with the recent upward trajectory of the stock, which has rebounded by 2.2% over the past seven days. Arkema will publish its first-quarter results on May 6, an event that may provide new data for analysts to assess. The general meeting is scheduled for May 21.
Technical Analysis of Arkema's Stock
Graphically, the stock is currently in the upper part of its Bollinger Bands, at 96% of the amplitude between the lower bound (€50.47) and the upper bound (€60.79). This proximity to the technical ceiling suggests a potential overbought zone, which could hinder short-term progress. The RSI, at 60, confirms a bullish dynamic without marked excess for now. The 50-day and 200-day moving averages, at €57.02 and €56.21 respectively, are both below the current price, indicating a favorable underlying trend. The most immediate resistance threshold is at €61.95, just 2.6% above the current level. This zone will be a crucial test to determine the stock's ability to continue its upward movement. In this context, the SBF 120, of which Arkema is a part, fell by 0.51% during the session.
