Legrand stock surges over 3% and takes the lead in the CAC 40
Legrand dominates the CAC 40 this Friday, with gains exceeding 3% since the previous day in a slightly declining Paris market. The stock of the group specializing in electrical and digital infrastructures consolidates ground gained Thursday, following Deutsche Bank's upgrade which had already supported the previous session's gains.
Deutsche Bank propels Legrand to the top of the CAC 40 with a target raised to €160
Legrand is trading at €140.55 during the session, representing a 3% gain compared to the previous close of €136.45. The stock is thus displayed in first position of the CAC 40, in an index declining 0.34% amid geopolitical tensions in the Middle East and trade divergences at the G20. The driver of this momentum is clearly identified: on September 3rd, Deutsche Bank upgraded its rating on the stock from "hold" to "buy" while raising its price target from €150 to €160, offering an upside potential of approximately 14% relative to the current price.
This move is part of a positive dynamic over the week, with the stock showing a 3% gain over seven days and 4.5% over one month, despite a decline of 4.32% over three months which reminds that the medium-term trajectory remains turbulent. The twelve-month performance remains solidly positive at nearly 9.5%.
The stock rises back above its three moving averages while the RSI remains in neutral territory
The technical configuration accompanies the fundamental rebound. The stock is found above its three moving averages: the 20-day MA at €137.63, the 50-day MA at €138.28 and the 200-day MA at €139.22, with respective spreads of 2.12%, 1.64% and 0.96%. This simultaneous crossing of three trend references translates into a return of bullish momentum in the short and medium term. The RSI at 44 remains in neutral zone, which does not signal an overbought configuration despite the session's amplitude, and leaves technical room towards the resistance identified at €142.70, a threshold approximately 1.5% above the current price.
The VIX declines during the session to 14.06 (-7.5%), indicating a low volatility environment. The resistance at €142.70 constitutes the next zone to monitor to confirm the resumption of the bullish movement.
