Carmila Stock: Jefferies Upgrades to Buy, Shares Climb 3.50%

Jefferies Upgrades Carmila to Buy and Raises Target to 20 Euros

This Tuesday, Jefferies upgraded its recommendation on Carmila from 'hold' to 'buy', while increasing its price target from 18.50 euros to 20.00 euros. Based on the current price of 16.60 euros, the new target offers a potential of about 20%. The stock immediately reacted, gaining 3.62% during the session, moving against the trend of the SBF 120, which fell by 0.95%. The real estate firm thus ranks among the largest gains of the broad index, while the Paris market is weighed down by the drop of the French composite PMI to 43.5 in May, a low since November 2020. According to the consensus of analysts surveyed, the stock is priced at about 8.9 times the expected earnings for the current fiscal year, with an EPS growth of about 4.4% expected year-over-year. This valuation benchmark sheds light on Jefferies' move, in a context where the real estate firm is still down 7.26% over the year.

The Stock Reaches Its 20-Day Moving Average After Weeks Under Pressure

The session allows Carmila to catch up to its 20-day moving average, which stands at 16.67 euros, with the price now only 0.42% below it. Longer averages (50-day at 17.00 euros and 200-day at 16.99 euros) remain above the price, indicating that the medium-term trend is still downward. The RSI at 37 is gradually exiting the low zone and accompanies today's rebound, after a period marked by a nearly 7% decline over three months. The rebound occurs as the stock had already attempted a recovery on May 20, at 15.76 euros, without managing to sustainably surpass its moving averages, as a May 20 publication already indicated. The support at 15.80 euros held during the downturn, and the next resistance is at 18.12 euros. Crossing the 20-day moving average remains the next technical threshold to confirm to validate the turnaround started this morning.