OVHcloud Shares Rise 5.37% at Close Thanks to Morgan Stanley

Morgan Stanley's Upgraded Recommendation

On Tuesday, Morgan Stanley upgraded its recommendation from 'Underweight' to 'Equal-weight', while confirming its target price of 9.05 euros on OVHcloud. This upward revision by one of the world's leading investment banks directly supported the stock of the European cloud leader, which had been trading at 7.55 euros the day before. The stock thus crossed the 7.95 euro mark at closing, with a modest 0.12% of capital traded, indicating a movement guided by institutional investors. Over the past week, the stock has accumulated a rise of 9.13%, but remains penalized in the medium term with a decrease of 20.66% over three months and 4.73% over a year, against a performance of 10.62% for the CAC 40 over the same period. This positive session is part of a favorable market dynamic, with the CAC 40 itself having risen by 0.83% to 8,025.8 points. OVHcloud's rebound comes after several challenging weeks, with the stock recently touching its lowest level since April. The OVHcloud Summit 2025, held last week in Paris with over 2,000 participants, was an opportunity for the group to announce several innovations in artificial intelligence and quantum computing, in a context where Octave Klaba has taken over operational management to steer the growth trajectory.

Technical Analysis of OVHcloud Stock

Technically, OVHcloud stock is currently well below its 50-day moving average of 9.97 euros, and its 200-day moving average of 10.61 euros, signaling an ongoing bearish trend. The gap between these two moving averages remains negative over the last twenty sessions, confirming the structural weakness of the stock for several months. The Relative Strength Index (RSI) is at 36, in the oversold zone, which suggests a possible technical consolidation in the short term without yet indicating a confirmed trend reversal. The stock is also close to its technical support identified at 7.29 euros, while the first major resistance is at 11.24 euros, nearly 41% above the current price. The MACD, with a line at -0.61 and a signal line at -0.73, displays a slightly positive histogram at 0.13, which indicates a beginning of reduction in bearish pressure, without yet validating a clear buy signal. The Bollinger Bands frame the stock between 7.26 euros and 8.31 euros, indicating contained volatility of 10.51% over a month and a very low beta of 0.09, reflecting a significant decorrelation with the CAC 40. This technical profile suggests a possible phase of consolidation, but will require a clear break of the 50-day moving average for a sustainable rebound.

Fundamental Outlook for OVHcloud

Fundamentally, OVHcloud crossed the symbolic one billion euros in revenue in 2025, showing organic growth between 9% and 11% according to the latest communications from the group. The public cloud segment, showing strong growth, represents a strategic growth lever, while international sales now weigh more than France in total revenues. However, TPICAP Midcap lowered its target price from 7.4 to 6.5 euros in November, stating that the sovereign cloud stock theme remains unclear at this stage. The consensus among analysts remains divided on the issue, in a context where the group must contend with high net debt and a competitive environment dominated by American hyperscalers. Nonetheless, Morgan Stanley's change in recommendation could signal an improvement in market perception of this European technology case.