Nexity Shares Drop by 5.41%, Approaching a Critical Support at €8.15
On Tuesday, shares of real estate developer Nexity experienced a significant decline, dropping 5.41% to €8.40 mid-session. This drop is part of a broader downward trend, with the stock losing nearly 7% over seven days. Despite this, Oddo BHF reaffirmed its positive recommendation on the stock the previous day, albeit lowering its price target.
Approaching Critical Support Level
Nexity's stock is now trading very close to its support threshold at €8.15. A downward breach of this level could lead to further weakness. The stock is trading significantly below its 50-day and 200-day moving averages, positioned at €8.92 and €9.50 respectively, indicating an unfavorable medium-term technical dynamic. Over three months, the stock has declined by 7.79%, with a one-year underperformance of 20.9%. The RSI, a momentum indicator, is at 45, in a neutral zone but trending downwards, confirming no immediate rebound signal. The next key date in the financial calendar is the publication of the commercial activity and revenue for the first quarter of 2026, scheduled for April 23.
Analyst Reaffirms Positive Outlook Despite Lower Target
In a note published on Monday, March 2, Oddo BHF reiterated its 'outperform' recommendation on the real estate group's stock, while lowering its price target from €14.80 to €14.00. Even with this revised target, there remains a significant revaluation potential of about 67% compared to the current price of €8.40. This target adjustment likely reflects the ongoing challenging conditions in the French residential market, amid high interest rates impacting new home demand. Additionally, the developer will hold its general meeting on May 21, an event that could provide insights into the group's strategy for the coming quarters.
