Mersen's Stock Drops Over 3%, Profit-Taking After Doubling in a Year

Stock Drops Despite Oddo BHF's Price Target Increase

Mersen's stock falls 3.21% to €40.96, after closing at €42.32 the previous day. This movement follows a slight decline from the previous session, already documented on the site, bringing the weekly loss to 6.27%. Oddo BHF, however, raised its price target on Wednesday from €40 to €45, with an 'outperform' rating. The new Oddo BHF target offers a theoretical potential of about 10% compared to the current price, yet it does not stop today's sell-offs. The Courbevoie-based group remains on a massive annual trajectory: up 87% over three months and more than doubled over the year (+104%), a path that makes short-term corrections more pronounced. The stock is among the notable declines in the SBF 120, while the broader index is up 0.24%.

Break Below the 20-Day Moving Average with a Comfortable Cushion on Longer Averages

The decline moves the price below the 20-day moving average (€42.87), now 4.46% above the last price, marking a short-term break after several weeks of an upward trend. However, the stock maintains a comfortable cushion on longer horizons: the 50-day average at €36.79 remains over 11% below the price, and the 200-day average at €27.31 nearly 50% below, reflecting the strength of the underlying trend. The RSI at 56 remains neutral and sends no signal of excess, while the support threshold identified at €35.12 leaves a margin before approaching the medium-term dynamics. The market context does not help: the VIX jumps 9% to 18.9, and the Nasdaq drops 2.2% at the time of writing, in an environment where central banks maintain a restrictive bias. The 20-day average at €42.87 will be the next reference point to assess a possible recovery of momentum after being included in the SBF 120 on June 19.