Bouygues Shares Drop 3% Despite Raised Target to 64 Euros
Bouygues shares significantly declined this Tuesday, March 3, dropping over 3% mid-session to 50.32 euros, after closing the previous day at 52.04 euros. This decline occurs in a context of a generalized downturn in European stock markets, amid geopolitical tensions related to the conflict in Iran. The construction, media, and telecom group thus sees some of its recent gains erased, despite a quarterly performance that remains solidly positive.
Despite Today's Decline, Analysts Give Favorable Signals
Despite today's decline, Bouygues benefits from a favorable signal from analysts. This Tuesday, New Street Research revised its price target upwards from 61 to 64 euros, while maintaining a buy recommendation. Compared to the current price of 50.32 euros, this target represents a potential revaluation of about 27%. The broker thus maintains a constructive view on the stock, less than two months before the release of the first quarter 2026 results, scheduled for May 7. The general meeting, scheduled for April 23, is another key event for the group's shareholders to watch.
Stock Shows Strong Growth Over Three Months and One Year
Over three months, the stock still shows a gain of nearly 15.7%, and over a year, more than 52%, indicating a strong underlying bullish movement. However, today's decline brings the stock below its identified resistance at 52.72 euros, which it has not managed to consistently surpass. The RSI, an indicator measuring the stock's relative strength, is at 77, a level indicating an overbought zone and making a short-term correction technically coherent. Nevertheless, the price remains well above its 50-day moving average, set at 46.95 euros, confirming the medium-term bullish trend. Today's decline is part of a general downturn in European markets, which are down between 1 and 3% due to uncertainties related to the conflict in Iran and its impact on energy prices. The surge in oil and natural gas prices could weigh on the supply costs of some of the group's subsidiaries, particularly in construction, a sector sensitive to fluctuations in raw material and energy prices.
