Rexel Shares Climb 2.66% Mid-Session, Following the Electrical Materials Sector

Analyst Adjustments Reflect Growing Confidence

On January 29, the analysis firm Oddo BHF adjusted its price target for Rexel from 28 euros to 32.50 euros, while maintaining a 'neutral' recommendation. This upward revision reflects a reevaluation of the stock's prospects, although the target remains 10.3% below the current price. This decision comes weeks after UBS also revised its target from 26 euros to 35 euros on January 9, with a neutral opinion. These successive adjustments indicate a gradual recognition by analysts of the strength of the French distributor's trajectory, although caution remains with neutral recommendations. The electrical equipment distribution sector benefits from a supportive environment due to investments in energy transition and infrastructure renovation. Recent performances by sector peers like ABB, which reported a record fourth quarter with revenue up 13% to $9.1 billion and improved operating margin, demonstrate the sector's strength.

Technical Signals Require Close Monitoring

Technically, Rexel shows mixed signals that require increased vigilance. The stock is now trading above all its significant moving averages, with a 9% gap from its 50-day average at 33.22 euros and a 28% distance from its 200-day average at 28.32 euros. This configuration indicates a firmly established upward trend, reinforced by the recent crossing of the resistance threshold at 35.85 euros. However, the RSI has reached a high level at 77, approaching the overbought zone and suggesting a possible consolidation phase in the short term. This indicator signals that the stock might experience a pause after its strong recent gains. The support is located at 32.35 euros, providing a safety margin of 10.7% from the current price. The presentation of the annual results for 2025 scheduled for February 11 will be a crucial moment to confirm the solidity of the fundamentals and the group's ability to continue its growth trajectory.