Nexans share rebounds above its 200-day moving average and gains nearly 4%
The French cable manufacturer accelerates sharply during the session, driven by a favorable analyst revision from JP Morgan published this morning. The rebound occurs as the share had suffered over the past three months, and it places Nexans among the rare securities showing strong gains on a nearly stable CAC 40.
JP Morgan upgrades to overweight and raises target to €183, representing potential upside of nearly 32%
The American bank revised its opinion on Nexans on Wednesday, August 5th, moving from neutral to overweight while simultaneously raising its price target from €160 to €183. Relative to the current price of €138.10, this represents upside potential of nearly 32%. Barclays for its part maintained its overweight rating on Monday, August 3rd, while lowering its target from €191 to €179, still representing potential upside of over 29% from current levels.
These two analyst opinions converge on a constructive view of the stock, even though Barclays has slightly reduced its price ambition. In this context, the share is posting a gain of 3.91% during the session, at €138.10, after closing at €132.90 the previous day.
The rebound places Nexans back above its two key moving averages, against a backdrop of marked quarterly decline
Today's gain restores a more favorable technical configuration to the share. Nexans has rebounded above its 20-day moving average at €132.41 (gap of +4.30%) and its 200-day moving average at €133.45 (gap of +3.48%), which signals a break from the downward momentum of recent weeks. The 50-day moving average at €143.06 remains above the current price, constituting a near-term obstacle before resistance at €148.70. The RSI at 45 is neutral, signaling neither overbought nor oversold conditions.
The share maintains a weekly performance of +11.28%, in the wake of half-year results published on July 29th, but remains down 12.59% over three months, reflecting a difficult period in the heart of summer. The next level to watch is the 50-day moving average at €143.06.
