Maurel & Prom Shares Soar Nearly 7%, Leading the SBF 120

A Jump of Nearly 7% Places Maurel & Prom at the Top of the SBF 120

Maurel & Prom shares gain 6.76% to €8.14 during the session, while the SBF 120 drops 2.21% and the CAC 40 loses 2.24%. The stock leads the SBF 120 at midday, ahead of Vallourec (+4.22%) and far ahead of a broader index weighed down by banking and transportation stocks. The movement follows a Brent surge of 5.70% to $76.09 a barrel, after US strikes against Iran and the claimed Iranian retaliation against military facilities in Kuwait and Bahrain.

Kuwait claims to have intercepted two ballistic missiles and thirteen drones without damage. Meanwhile, Donald Trump has declared from the NATO summit in Ankara that the ceasefire with Iran is, in his view, over, a political escalation that feeds the risk premium on the oil market. The VIX rises by 20.17% to 18.71, indicating increased nervousness in the stock market.

A Rebound Bringing the Stock Back to its 20-Day Moving Average After a Difficult Month

Today's rebound brings the stock back to its 20-day moving average (€8.10), after a decline of nearly 12% over one month and 25.91% over three months. The 50-day moving average at €9.03 remains 9.91% above the current price, while the 200-day moving average at €7.34 provides a cushion of nearly 11%, illustrating the extent of the spring correction on a stock that is still up +61% over the year. The RSI at 32 has just exited the oversold zone, consistent with a technical rebound after the late June slump, when the stock broke its support at €7.94 amid de-escalation around the Strait of Hormuz.

The situation has reversed with the resumption of hostilities, but the resistance at €9.32 remains distant. Based on the expected earnings per share, the stock is trading at about 7.8 times the earnings for the current fiscal year according to the consensus of surveyed analysts.