FDJ UNITED Stock: Shares Fall 5.15% Over the Week, New Pressure Following Downward Revision of Targets
This week saw a new decline for FDJ UNITED, despite a generally favorable stock market environment for most French stocks. The stock was penalized following the release of disappointing quarterly indicators and a downward adjustment in its revenue expectations for the current year. Investors continue to question the growth dynamics of the group as other indices make gains.
Weekly Performance Overview
FDJ UNITED ended the week on a negative note, showing a weekly loss of 5.15%. At the close of the last trading day, the stock settled at €26.54, reaching a level considered as a technical support threshold. This correction is in stark contrast with the performance of the CAC 40, which gained 1.65% over the same period, and the SBF 120, which advanced by 1.35%. Over the past year, the stock has fallen by 25.45%, indicating a persistent underperformance compared to the main French stock indices. The negative trend is part of a context of portfolio rotation in favor of other values and illustrates market distrust as FDJ UNITED goes through a strategic reassessment phase. Trading volumes followed this movement, without indicating any abnormal acceleration or sudden drop, but reflecting a gradual exit of some institutional investors. The stock remains distant from its annual highs and is no longer driven by the catalysts that previously fueled its valuation.
Impact of Quarterly Results and Revised Forecasts
This weekly decline follows the publication of third-quarter results, which fell short of market expectations. The reported revenue was €864 million, showing apparent growth but a decline of 3% on a comparable basis, hampered by a slowdown in online betting and gaming activities in certain markets and the impact of increased taxation in France since July 1. The adjustment made by the management to the revenue outlook for 2025 has increased the pressure. The group now aims for 'a revenue exceeding €3.7 billion', whereas the previous target was set at €3.79 billion on a comparable basis. However, FDJ UNITED reaffirmed its expectation for a current Ebitda margin rate above 24%, demonstrating a desire to preserve profitability in a more complex market environment. The company continues to implement its transformation plan, including upcoming commercial launches in the lottery sector. The quarterly results confirmed the ongoing decline in online activities, while network activities in France remained relatively stable.
Technical Analysis of the Stock
Technically, the FDJ UNITED stock is now in immediate contact with its support threshold at €26.54, close to the lower boundary of the Bollinger Bands at €26.88. The increasing gap to the 50-day moving average (€28.08) and even more so with the 200-day moving average (€31.30) illustrates the persistent downward pressure. The RSI indicator, having dropped to 20, points to an oversold situation, confirmed by a MACD index oriented in negative territory and a one-month volatility of 4.64%. The stock remains in bearish territory, having failed to break through the resistance positioned at €28.86. All these elements highlight a market that is hesitant about the case, while investors remain attentive to the group's ability to restore a more favorable momentum.
