BOLLORE Shares Drop 2.6% Following Vivendi, Weighed Down by Legal Dispute
Bolloré shares falter after several weeks of gains. The decline occurs as Vivendi, which is significantly owned by the holding, sharply falls during the session amid a legal dispute. This session contrasts with the bullish tone of the CAC 40 and the SBF 120.
Vivendi's Legal Dispute Spills Over to the Holding Controlled by the Bolloré Family
Bolloré's stock drops 2.61% to €5.40 at mid-session, while the CAC 40 is up by 0.70% and the SBF 120 increases by 0.66%. The stock ranks low in the daily index standings, paralleling Vivendi's nearly 6% fall. The ongoing legal dispute concerning the terms of Vivendi's spin-off remains a risk factor monitored by the market. From a strictly stock market perspective, the decline follows the session mentioned on June 2, where the stock reached its recent highs (already a tense configuration at the top of the range). Thus, today's movement marks a profit-taking on a stock that was, on the eve, up more than 15% over three months.
A Decline That Does Not Undermine the Underlying Bullish Momentum Over the Past Three Months
Despite today's decline, the stock still holds a gain of 15.43% over three months and remains above its three key moving averages. The price is 4.25% above the MM50 (€5.18) and 11.11% above the MM200 (€4.86), a gap that reflects the strength of the underlying trend. The RSI at 68 is approaching the overbought zone, confirming that today's session serves as a breather after the spring's acceleration. The nearest technical support is identified at €5.13, about 5% below the current price, while resistance lies at €5.60. The valuation, according to the consensus of surveyed analysts, is about 48 times the expected earnings for the current fiscal year. Vivendi's legal trajectory remains the main short-term variable for the holding.
