Safran stock leads the CAC 40 with an RSI at 32 in oversold territory
The aerospace and defense engine manufacturer's stock is leading the CAC 40 this Friday morning, in an index showing slight gains. JP Morgan raised its price target today, providing additional support to a security seeking to recover after breaking its support level at the beginning of the week.
JP Morgan raises its target to €460 with an overweight rating on Safran
JP Morgan published a new opinion on Safran this Friday, raising its price target from €430 to €460, with an overweight rating. Compared to the current price of €328.30, this target implies an upside potential of more than 40%. CIC Market Solutions maintains a buy rating on the security, reiterated on Wednesday, with an unchanged target of €378, representing an upside potential of approximately 15% from today's price.
These two favorable opinions come as the stock attempts to recover after its support level at €328.70 was breached downward on Wednesday in a session marked by a broader decline in the CAC 40. Over one month, the decline remains pronounced at nearly 10%, despite a gain of more than 12% over three months.
A rebound that keeps the stock below its short-term moving averages
With a 1.96% gain in the session, Safran is trading at €328.30 but remains below its 20-day and 50-day moving averages, at €341.64 and €341.89 respectively, with a gap of approximately 4% in both cases. The 200-day MA, at €313.94, provides support from below, with the price trading at slightly more than 4.5% above it. The RSI at 32 reflects a persistent oversold configuration, inherited from the correction over recent weeks, which had brought the stock down from its all-time high recorded in early August at €361.90. To regain positive short-term momentum, Safran will need to break above the €341-342 zone, where the two moving averages converge, before targeting the resistance level at €363.60.
