Safran's Stock Bounces Back Over 2% and Approaches €300
The aeronautical engine manufacturer has made a strong recovery in mid-session this Tuesday, within a notably bullish CAC 40. The stock has significantly erased the previous day's decline and is back in a technical zone that has been closely watched for several sessions. Concurrently, the group has been active with industrial announcements and has been subject to a target adjustment by Citi.
Safran Rebounds Sharply, Nearing Its Technical Resistance at €305.70
Safran's stock has advanced by 2.17% to €300.90, leading the gains in the CAC 40, which is up by 0.85%. The stock is among the top performers in the Paris index. Over the month, the stock has gained 5.1% and now shows a yearly increase of 13.25%. The price has returned to its 200-day moving average at €300.00 and is positioned above the 20-day moving average (€289.77) with a gap of 3.84%. The immediate technical hurdle to overcome is the resistance at €305.70, previously tested in early June, while the RSI at 53 indicates a neutral momentum, leaving room before any buying tension.
Safran's Stock Up 2.17%: Citi Trims Target to €305 as the Group Invests in Montluçon
Citi adjusted its price target for Safran on June 8, reducing it from €342 to €305 while maintaining a neutral stance. The new target is now almost at the current price level, with analysts' opinions remaining divided on the stock. On the industrial side, the group has confirmed an investment of €120 million in its Montluçon site in Allier to increase its production capacity for the AASM Hammer air-to-ground weapon. This move is expected to create over 150 jobs, with production projected to reach about 1,400 units in 2026, up from 200 in 2022. Additionally, this Tuesday, the group announced its partnership with Technip Energies, Airbus, and Tereos to develop a sustainable aviation fuel unit in Dunkerque, aiming for a capacity of 160,000 tons per year. The €305.70 zone is crucial in the short term, as breaking through it could pave the way back to the highs of February.
