Capgemini Stock: Shares Hit a Five-Year Low Below 100 Euros
Capgemini continues its decline in the stock market this Tuesday, February 24, falling nearly 3% to drop below the symbolic 100 euro mark. The stock has broken below its previous six-year low, set on February 12 at 99.74 euros. This new low comes as two research firms have just revised their price targets on the stock.
Current Trading Status
Capgemini's share price stands at 98.92 euros at midday, down 2.92% from the previous day. By breaking the support threshold of 99.74 euros, the stock marks a new low since 2020, confirming the downward trend that has prevailed for several months: the stock has lost nearly 25% in three months and almost 40% over a year. Technical indicators reflect this pronounced selling pressure. The RSI, which measures the speed and magnitude of price movements, has fallen to 18, a level indicating a rarely seen oversold condition. Moreover, the price is now significantly below its 50-day moving average (132.48 euros), with a gap of more than 33 points illustrating the extent of the drop compared to the medium-term trend. The next technical area to watch is at the lower boundary of the Bollinger Bands, at 90.23 euros.
Analyst Recommendations Remain Constructive
Despite the stock's fall, analyst recommendations remain constructive. UBS has revised its price target from 155 to 150 euros while maintaining a buy recommendation. Meanwhile, BNP Paribas Exane has made a more significant adjustment, reducing its target from 170 to 150 euros, with an 'outperform' rating. These two revisions, dated February 23, thus converge towards a target of 150 euros, representing a potential revaluation of more than 50% compared to the current price of 98.92 euros. The next meeting with the market is scheduled for April 30, when the digital services group will publish its first-quarter revenue. The general assembly will be held on May 20. These deadlines could provide concrete elements to assess the operational trajectory of the group in a sector environment that remains under pressure.
