Nexans Shares Drop 4.45% at Close Following Rescheduling of GSI Project
Nexans shares closed at 126.80 euros this Tuesday, January 6, marking a 4.45% decrease from the previous session's 132.70 euros, following the announcement of a rescheduling in the Great Sea Interconnector (GSI) project timeline between Greece and Cyprus. However, this did not impact the group's 2028 guidance.
Market Reaction and Analyst Perspectives
The Nexans stock closed at 126.80 euros this Tuesday, January 6, down by 4.45% compared to the previous session's 132.70 euros, following the announcement of a rescheduling of the Great Sea Interconnector (GSI) project timeline between Greece and Cyprus, though this had no impact on the group's 2028 guidance. The traded share capital of 0.36% reflects a cautious reaction from investors to this new twist in the strategic contract worth 1.4 billion euros won in 2023. The stock thus erased the weekly gains of 1.04% accumulated over the last seven days. In this tense context, JP Morgan raised its price target from 131 to 145 euros on the same day, maintaining a neutral recommendation, suggesting a potential upside of 14.35% from the closing price. This revision indicates that the analyst favors a long-term view on the French cable manufacturer, despite the uncertainties related to the rescheduling. The day's price remains in line with the 50-day moving average, which stands at 123.88 euros, indicating a still favorable medium-term trend. The MACD shows a positive signal with a line at 1.03 above its signal at 0.39, confirming an underlying bullish momentum despite the day's decline.
Financial Targets and Strategic Movements
Nexans reaffirmed that these adjustments will have no impact on its 2028 financial targets, thanks to the strength of the group's order book and proactive actions to offset any potential impacts from 2026. Additionally, on December 22, the group announced the sale of Autoelectric, its automotive wiring harness business, to the Indian group Motherson for 207 million euros, marking the completion of its strategic transformation. Technically, the RSI is at 64, placing the stock in a moderately buying zone without apparent overheating. The Bollinger Bands, ranging between 119.65 and 132.22 euros, position the current price near the lower bound after this decline, suggesting a potential for technical rebound. The stock also trades above its 200-day moving average set at 115.10 euros, confirming a positive long-term orientation. The support threshold at 119.60 euros remains a key level to monitor in the upcoming sessions. Over one year, Nexans has shown a performance of 21.81%, demonstrating the strength of its model in a sector driven by energy transition and the deployment of electrical interconnections.
