Eiffage Shares Drop 3.5% Breaking Support at €122.25
The construction and concessions group experiences a sharp decline during the session, amid a heavily penalized Paris market due to the resurgence of tensions in the Middle East. The stock erases its early month rebound and settles below several technical benchmarks that have been monitored since spring. This movement is part of a generalized correction in the French construction sector.
A Drop that Breaks the €122.25 Support and Influences the Trend
Eiffage shares lose 3.46% to €119.85, within a CAC 40 that drops 2.25% and an SBF 120 down by 2.16%. The stock broke through its support at €122.25 during the session, a threshold that had held during previous consolidations, and is now trading below its three reference moving averages. The gap from the long-term benchmark is significant: the price is 4.29% below the MM200 (€125.22) and 6.61% below the MM20 (€128.33), indicating a break in the recovery dynamic that began in mid-June.
The RSI at 40 remains in the neutral zone, not yet signaling any overselling. The movement aligns with that of Vinci (-3.56%) and Bouygues (-2.15%), with the entire French construction sector retreating in the wake of a CAC 40 weighed down by the new escalation between Washington and Tehran. The VIX jumps nearly 20% to 18.63, reflecting a resurgence of risk aversion following strikes claimed by the United States and the Iranian response targeting facilities in Kuwait and Bahrain.
A Context of Active External Growth but Overshadowed by Risk Aversion
The group announced a few days ago the acquisition by Eiffage Construction of 80% of the Luxembourg-based Baatz group, a deal that brings the new entity to 750 employees and €200 million in revenue. This external growth complements the market won in June for the NSC2 offshore conversion station in Germany, and the exclusive negotiation engaged on the Warnow tunnel in Rostock. The core of the dossier remains robust, but it is overshadowed today by macroeconomic factors.
From the analysts' perspective, CIC Market Solutions initiated its coverage yesterday with a buy rating and a target of €160, representing a potential of more than 33% compared to the current price. Moreover, the French construction climate remains depressed: construction climate at -18.2 in June, order books at -33, and civil engineering activity down 10% over three months according to the FNTP. The next technical benchmark is now the MM200 at €125.22, whose reconquest would condition a return above the lost support.
