BNP Paribas Stock Climbs Nearly 2% and Breaks Key Resistance
The stock of France's leading bank picks up pace mid-session, surpassing a technical threshold that has been closely watched for several weeks. This movement is part of a broadly rising CAC 40, where banking stocks are among the main drivers of the Paris index.
The stock breaks through the €94.43 resistance during the session and solidifies its trend
BNP Paribas stock gains 1.7% to €94.73 by midday, while the CAC 40 is up by 0.84%. The stock is among the highest risers in the Parisian index, alongside Société Générale (+2.39%) and Crédit Agricole (+1.03%), which share a favorable sectorial dynamic.
In the session, the price crossed the resistance of €94.43, a threshold previously tested unsuccessfully in earlier attempts. On June 5, the stock had hit this same barrier before retreating.
The bank is performing above its three moving averages, with a gap of 14.66% over the MM200 at €82.62. The year-on-year growth reaches 21.23%.
UBS Raises Its Target and the Banking Sector Benefits from a Supportive Interest Rate Environment
UBS raised its price target from €111 to €113 on June 8, maintaining its buy recommendation. The new target represents a potential upside of about 19% from the current price.
Based on the consensus of analysts surveyed, the stock is trading at about 8.2 times the earnings of the current fiscal year, with an expected earnings per share growth of 11.7% year-over-year. The 3-month Euribor at 2.226% in May (+0.24 point year-on-year) remains a followed parameter for the sector's interest income.
On the operational front, BNP Paribas raised its profitability targets for its commercial banking in Belgium at the beginning of June, aiming for a pre-tax RONE of 25% by 2030, up from 23% previously.
