Bouygues Shares Drop 8% in a Week Despite Analyst Upgrade
Bouygues' stock is experiencing a sharp decline this Friday midday, trading at 48.30 euros, after a challenging week with a cumulative drop of 8.38%. This downward movement follows the day after Oddo BHF's target price upgrade, which was insufficient to reverse the trend. However, the construction, media, and telecom group has seen an increase of nearly 12% over three months and 38.5% over the year.
Analyst Upgrade
Yesterday, Oddo BHF raised its target price on Bouygues from 44 to 50 euros, while maintaining a neutral recommendation. With the current price at 48.30 euros, this new target suggests a limited appreciation potential of about 3.5%. Despite the upgrade, the stock continued its downward trend that began earlier in the week. The next financial milestone for the group is scheduled for May 7, the date of the first quarter 2026 results publication, which could be a catalyst for the stock value.
More broadly, Bouygues has experienced a significant correction over the past week, erasing some of the gains accumulated in recent months. The stock had indeed increased by nearly 12% in the previous quarter, supported by a favorable environment for the diversified conglomerate.
Technical Analysis
Technically, Bouygues' stock price is currently below its 20-day moving average (50.37 euros) but above its 50-day moving average (47.30 euros). This framing indicates a recent pullback in the stock from its short-term highs, without necessarily challenging the medium-term upward trend. The 200-day moving average, established at 41.22 euros, remains significantly below the current price, confirming that the underlying trajectory remains upward.
The RSI is at 52, in a neutral zone, which does not indicate either overbuying or pronounced overselling. The most relevant support threshold is at 44.49 euros, a level that would be a point of vigilance in case of further decline. On the upside, the resistance to watch is positioned at 52.72 euros, representing a gap of more than 9% from the current price.
