Mersen's Stock Drops Nearly 3%, Marking One of the Worst Declines in the SBF 120
The specialist in advanced materials and electrical solutions extends its correction into the mid-afternoon, as the SBF 120 trends upwards. The consolidation continues following a target raise by Oddo BHF, indicating that technical arbitrages prevail over fundamental arguments.
A New Decline After an Exceptional Stock Performance
Mersen's stock falls 2.76% to €38.82, sliding among the steepest declines in the SBF 120 while the index itself gains 0.68% during the session. The stock confirms a significant profit-taking movement, with a decline of 13.43% over the week, contrasting with a performance still close to 90% over one year and 78% over the quarter. In terms of indicators, the price has fallen below its 20-day moving average (€42.84), with a negative gap of nearly 9.4%, while it remains well above its 200-day MA at €27.39. The RSI at 46 indicates a neutral configuration after cooling off over the week, and the support at €35.12 is the next marker to watch if the decline continues.
Oddo BHF Raises Its Target to €45, Integration into the SBF 120 Effective Since June 19
From the analysts' perspective, Oddo BHF yesterday raised its price target from €40 to €45 and reaffirmed its outperform rating. The new target offers a potential of about 16% compared to the current price, but it was not enough to stop the selling momentum of the session. This movement follows an earlier milestone this month: Mersen was added to the SBF 120 on June 19, following the quarterly review by Euronext, as detailed in a company communication. The current consolidation thus occurs after a marked multi-quarter revaluation, and the level of €35.12 remains the technical threshold in case of continued pullback.
