Nexans Stock Rises 3.57% at Close After Dispelling Concerns Over the Great Sea Interconnector

Market Recovery and Investor Confidence

Nexans stock closed this Wednesday, December 10, at 127.70 euros, up 3.57% compared to the previous day, marking a significant rebound after a sharp correction on Monday, December 9. The drop on Monday reached 9.9% during the session following reports from Cypriot media about a cancellation of tenders related to the Great Sea Interconnector. The company quickly responded with a statement on December 9, reaffirming its commitment to the project in accordance with its contractual obligations, noting that it had received substantial payments that allowed for the cable's production, thus eliminating any financial risk in case of adjustments. This clarification reassured investors and brought the stock back into positive territory. Over the week, the performance now stands at 0.08%, indicating stabilization after the volatility at the start of the week. The stock has risen 16.09% over the year and is up 0.39% over three months, confirming its resilience in a favorable sectoral context linked to the energy transition. With 0.45% of the capital traded during the session, the trading volume reflects a renewed interest from investors after several days of wait-and-see due to uncertainties surrounding the electrical interconnection project between Cyprus and Greece. The stock also benefits from a favorable environment in the cable sector since the good results published in mid-November by Danish competitor NKT.

Technical Analysis and Market Indicators

Technical analysis highlights favorable short-term indicators. The MACD histogram is at 0.32, its highest value in several weeks, while the MACD line at 1.82 is now above the signal line positioned at 1.51. This configuration indicates a resurgence of buying momentum and suggests the potential for continuation of the upward movement initiated after the group's clarifications. The RSI is at 45, in a neutral zone, leaving significant room for progression before reaching an overbought area, indicating a balance between buyers and sellers without excess. However, the price is approaching a major technical resistance zone at 131.70 euros, a level that could serve as a validation point for the bullish trend. The technical support at 118.90 euros provides a safety margin of nearly 7% in case of a reversal. The stock is now trading above its 50-day moving average set at 123.70 euros, confirming a positive short-term dynamic. The one-month volatility is at 10.82, a moderate level that reflects orderly movements despite recent shocks. The near-zero beta at 0.02 confirms a largely uncorrelated evolution with reference indices, characteristic of a defensive profile in an uncertain market environment.

Sector Outlook and Strategic Developments

On December 4, JP Morgan raised its price target on Nexans from 129 to 131 euros, while maintaining a neutral recommendation. This revision, although measured, comes in a favorable sectoral context. The consensus among analysts places the average price target at 134 euros, representing a potential upside of 5.3% from the current level. Additionally, the dynamics of the cable sector benefit from the solid results published in mid-November by NKT, a Danish competitor, which reported an organic growth of 11% and an operational Ebitda increase of 28%, reviving investor interest in the entire theme. At the end of November, Nexans announced the appointment of Vincent Piquet as Chief Financial Officer effective January 19, 2026, who will join the executive committee of the group and will be based in Paris. With international experience at Renault and General Electric, particularly as the financial director of Ampere, Renault's electric subsidiary, this recruitment aims to support the group's growth and transformation phase. With a turnover of 7.1 billion euros in 2024 and a strategic positioning on the energy transition, Nexans benefits from enhanced visibility on its major electrical interconnection projects. Investors will now monitor the stock's ability to sustainably exceed the 131 euro threshold to validate the technical recovery that has begun.