Rexel stock rebounds but still loses 4% over one week
After a turbulent week marked by a €500 million capital raise and the acquisition of American company GCG, Rexel regains ground this Friday morning. The electrical equipment distributor is advancing in a Paris market oriented upwards, as recent capital operations had weighed on the stock over the past few days.
A rebound of 1.58% that only partially offsets the weekly decline of 4%
Rexel is trading at €34.74 mid-morning, up 1.58% from Thursday's close at €34.20. This rebound comes after a difficult week: the stock is still down 4.14% over seven days, penalized by the dilutive effect of the €500 million capital increase completed on September 29 and by the announcement on Friday, September 25, of the acquisition of GCG for $1.4 billion. Over one month, the stock is still down 2.99%, although the one-year performance remains solid at over 25%.
The CAC 40 is up 0.85% in trading and the SBF 120 is up 0.83%, providing a favorable context for today's rebound. Rexel is part of the session's upward momentum without being among its main drivers.
Rexel below its three moving averages, CIC Market Solutions maintains its target at €44
On the indicators front, the picture remains unfavorable in the medium term. Rexel is trading below its three moving averages: the MA20 at €36.23, the MA50 at €36.40 and the MA200 at €36.04, each at a gap of between 3.6% and 4.6% above the current price. The RSI at 39 reflects a configuration approaching the oversold zone without clearly tipping into it, which leaves the selling pressure of recent weeks visible in the indicators. The support at €34.20 — Thursday's closing level — has been defended for now.
CIC Market Solutions maintains its buy rating with a target of €44 on Friday, representing an upside potential of nearly 27% from the current price. The next resistance is at €37.95, a level the stock had approached without breaking through in early September.
