BNP Paribas Shares Advance at Midday, Oddo BHF Adjusts Target
On Tuesday, February 3rd, BNP Paribas shares showed a modest increase of 0.35% at midday, yet managed to hit new highs this morning, surpassing its own 2007 record. This development is part of a short and medium-term upward trend, with gains of 4.7% over a week and 38.23% over three months. The leading bank in the Eurozone is set to unveil its 2025 annual results on February 5th.
Positive Signals from Analysts on the Banking Sector
Research offices are increasingly positive about the banking sector. Oddo BHF revised its price target on Monday from 88 euros to 101 euros, maintaining an 'outperform' rating. This revision suggests a potential appreciation of nearly 9% from the current share price. At the end of January, Grupo Santander also adjusted its target from 94 euros to 101.30 euros, advising to 'outperform'. These successive revaluations reflect analysts' growing confidence in the prospects of the French banking group. They come at a time when the institution benefits from a favorable economic environment, supported by still high interest rates that bolster its commercial profitability. These adjustments come just days before the full accounts for fiscal year 2025 are expected to be published tomorrow. Investors will particularly scrutinize the evolution of net banking income and the operating ratio, two key indicators to assess the group's ability to maintain operational performance in a changing environment.
Technical Analysis of the Stock
From a technical standpoint, the stock is significantly above its reference moving averages. The 50-day moving average is at 81.07 euros and the 200-day at 77.27 euros, demonstrating the strength of the bullish movement initiated in recent months. The stock is now trading at the contact of its former resistance level, set at 92.38 euros, which has now been surpassed. However, the Relative Strength Index has reached a high level at 78, approaching the overbought zone which generally starts at 70. This situation suggests a strong intensity of recent purchases, but also a possible short-term consolidation. The one-month volatility remains contained at 7.69%, indicating a steady progression rather than a speculative surge. The beta of 0.44 further confirms the stock's lower sensitivity to market fluctuations, a characteristic appreciated in the banking sector during periods of macroeconomic uncertainty.
